Wow. I guess the Objectivists have won. America couldn't survive their agent Alan Greenspan. You've heard that
the government now has control over the companies that fund around two-thirds of all new home mortgages. Or, as the LAT succinctly summarizes: "Washington's move means the federal government will directly back the great majority of the nation's home mortgages."
But, really, this is the line that got me.
But, on the upside, if the companies return to profitability, the government would be first in line to get its money back.Yes. The government can break even if it engages massive inflationary policies now.
Sounds like Iraq update:
The NYT emphasizes that when Congress awarded Paulson the power to bail out the mortgage giants if necessary, he never intended to use it. "But he quickly learned that getting those powers made their execution inevitable," says the NYT.