Freddie Mac, Fannie Mae Jitters Over?
Those quasi-government entities, Freddie Mac and Fannie Mae, just got access to the Fed discount window, saving them from going to zero. They had been down around 50 percent for today’s session, but now they’re doing much beter.
Apparently, the President’s position, which as of yesterday, was to let these companies fail, changed and he drove the Fed to offer capital to them. Who knows what goes on behind closed doors?
But you gotta believe that Bush was hearing the comparisons, again, of himself to Hoover, and he wants to avoid that comparison at all costs.
And that’s a good thing.
Question is, is this the economy’s last gasp before its heart fails? Is this the “last kick” before the horse dies? Or is it a HUGE infusion of blood to a bleeding patient? Have we stopped the bleeding? If so, this could be the turnaround everybody has been looking for.
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