It’s Monday- and yesterday was quite a day. Usually the sidebar turns slowly on a Sunday, but after Paulson and the boys pulled together their GSE bailout, things were busy around here.
The Treasury Secretary assured us on Friday that the government was committed to keeping the GSEs in their current form, but Mish Shedlock asks this interesting question:
To What Extent Did Paulson Lie?
Now we get to debate the meaning of the following
"Keeping Fannie and Freddie in Current Form"
"There will be no nationalization of Fannie and Freddie"
"A government takeover will not be necessary"
It seems to me that and injection of $15 billion capital into Fannie Mae and Freddie Mac and creating a new class of Government Owned Securities is most emphatically NOT in agreement with the above ideas.
