Quote:
Originally Posted by DieselAddict
Remember we bailed out many more than just Fannie & Freddie. The housing boom & bust would have probably happened sooner or later anyway.
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Yes we did. A couple of things though. We don't have that much money so if we could have saved on Fannie and Freddie, it might have been good. Later works better for me, I don't know about you. In any case, if F&F hadn't gone around guaranteeing bad loans, maybe, just maybe, we might not have so many other people going wild making those bad loans and maybe, just maybe, the boom won't be as good and the bust won't be as bad.
If you are going to guarantee any loan I have, why won't I take advantage of the guarantee and make as much as I can today? If it goes south, it's YOUR problem. You guaranteed it. If it makes money, good for me. Private Profit, Public Risk. If you will guarantee my losses at the casino, I'll take my life savings there. I win, I'm rich. I lose, you pay.