Last few weeks on Wall Street have been as eventful as you can get. Concerns over the financial viability of both Fannie Mae and Freddie Mac have taken a heavy toll on their stock price. Together they guarantee about $4.2 trillion in home mortgages or close to half of all the mortgages generated in the US.
But the events of last few weeks and the staggering amount involved have led the Bush administration to create some sort of a taxpayer backed bailout package. This is the second bailout package after the one offered to Bear Stearns. But this raises questions like are Fannie and Freddie too big to fail? Should the taxpayers be on the hook for all the bad decisions made by a few on Wall Street?
A New York Times article takes this a step further and questions if the United States a nation too big to fail.
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