Ignoramus19502 wrote:
On 2008-07-15, cavelamb himself wrote:
John R. Carroll wrote:
cavelamb himself wrote:

azotic wrote:

It appears the american taxpayer will subsidize the risks taken by
sophisticated investors.




http://www.reuters.com/article/press...008+BW20080711

Since we have a free market Freddie Mac and Fannie Mae should be
allowed to go broke.
New entities will arrise to fill the vacume left by Freddie Mac
and Fannie Mae in the mortgage
market.


Best Regards
Tom.




That's because _you_ have no money invested there...


You wouldn't be able to buy a stick of gum or loaf of bread the day
after either of these failed Richard.

I do not see any evidence for this.

Some people or businesses who invested in mortgage backed securities
that are guaranteed by these companies, would be a little poorer
without those guarantees. And home loans will be slightly more
expensive, as they should be. But I do not see a big fallout from
Fannie mae and Freddie Mac going bankrupt.

Well Iggy, here's one.
The credit markets will evaporate and that will stop bussiness in it's
tracks.


--

John R. Carroll
www.machiningsolution.com