Bailouts and False Hopes
Housing Wire weighs in today with a cautionary note on the bailout of Fannie Mae and Freddie Mac, making the same point we did in our pieces this week on loan
Jul 31, 202013.6K Shares1.1M Views
Housing Wire weighsin today with a cautionary note on the bailout of Fannie Mae and Freddie Mac, making the same point we did in ourpiecesthis week on loan workouts – There’s no quick fix here.
From Housing Wire:
“„Most analysts we spoke with suggested that the move to take over Fannie and Freddie would do little to ultimately help housing or restart the non-agency mortgage market, and would also do equally little to stanch a credit market crisis that has ripped apart balance sheets for well over four quarters now, despite strong investor optimism on Monday.
Merrill Lynch economist David Rosenberg told Housing Wire that the bailout amounts to proof of how broken the financial system really is. That’s not the spin presented with the bailout. The government was seen as acting aggressively to ease the credit crunch.
Don’t buy that line, and don’t put much faith in that stock market rallyMonday. One thing that’s becoming clear in this mess is that no quick fix exists, and that the government is usually a step or two behind the problem. The bailout drew praisefrom many quarters, but it’s time for the government to stop patting itself on the back and acknowledge the tough times still ahead.
Camilo Wood
Reviewer
Camilo Wood has over two decades of experience as a writer and journalist, specializing in finance and economics. With a degree in Economics and a background in financial research and analysis, Camilo brings a wealth of knowledge and expertise to his writing.
Throughout his career, Camilo has contributed to numerous publications, covering a wide range of topics such as global economic trends, investment strategies, and market analysis. His articles are recognized for their insightful analysis and clear explanations, making complex financial concepts accessible to readers.
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