How will the market react to the governmentt takeover of mortgage giants?
"that the federal government was taking control of mortgage giants Fannie Mae and Freddie Mac. "
http://news.yahoo.com/s/ap/20080907/ap_on_bi_ge/mortgage_giants_crisis
Best Answer
408 points
SallyG answered 3 months ago …
I think that they never should have been allowed to go public. (I believe-correct me if I am wrong-that they started out as government agencies that went private to raise more capital.) Now that the government is taking them back, I saw on AOL a comment that there was question as to how institutional investors could be returned some of their capital. IMHO, if someone-whether individual or institution-made a bad investment, that party should suffer the loss, not the taxpayer.
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2703 points
MNSL answered 3 months ago …
There will some stability together with positive developments in the market.
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288 points
CG answered 3 months ago …
It should tank massively, but will probably rally then be lower in a few weeks just like every other time the gov't steps in with a desperate bailout or rate cut on options expiry week and the "officials" lie about how everything is looking good and will be well-managed.
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