government bailout of FNM and FRE

[gnome]

Quote from CoolTrader:

Who gives the goverment the right to take over? By law? Share holders lose their shirts in this deal.

Under Economic Facism, the Gummint can do any damn thing it wants.. including disregarding laws and constitutionally guaranteed rights.

 

[GTS]

Quote from CoolTrader:

Who gives the goverment the right to take over? By law? Share holders lose their shirts in this deal.

FNM and FRE's boards each approved the deal.

Of course they did that under the threat of FHFA declaring them undercapitalized...

 

[nutmeg]

Buffett: (Laughs.) No, I don't think there's much to get back into. We were with them, like I say, I think we owned 8-1/2 percent or so of Freddie Mac in 1999, but they unfortunately followed the course of Mae West when she said, 'I was Snow White, but I drifted.' (Laughter.) Both Freddie and Fannie not only drifted, I mean, they were blown away.

Cont, on link

http://www.cnbc.com/id/26606876/site/14081545

 

[GTS]

Another take on the issue of the gov't takeover: Holders Have Little Chance to Win Relief

http://online.wsj.com/article/SB122092385451113169.html?mod=hpp_us_whats_news

But law professors said two federal laws -- one passed in 1992 and another passed earlier this year -- explicitly authorize Mr. Paulson to bring the companies under government control. They said a challenge to the constitutionality of the laws would be a longshot. "That's not a winning claim," said Henry Hu, a professor at the University of Texas Law School.