Republican Recession Watch: Fannie Mae & Freddie Mac To Be Turned Over To The Government

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Running the federal government is, indeed, "hard work". Republicans, for the past decade or so, have worked hard at getting elected then once in office they think the job is done - mission accomplished. That's why they argue so strenously against the government we are all a part of. That is why their goal is to privatize as much of it as they can while sending as much money into the hands of their friends, families and other associates. But this great nation didn't become great by our government sitting back and letting the robber barons belly up to the table. We need the government to mind the store, to referee, to regulate and legislate so we can keep the country running. Bush and his fellow Republicans like McCain fiddled while the mortgage crisis grew and now the fallout is almost daily.

Senior officials from the Bush administration and the Federal Reserve on Friday called in top executives of Fannie Mae and Freddie Mac, the mortgage finance giants, and told them that the government was preparing to place the two companies under federal control, officials and company executives briefed on the discussions said.

The plan, which would place the companies into a conservatorship, was outlined in separate meetings with the chief executives at the office of the companies’ new regulator. The executives were told that, under the plan, they and their boards would be replaced and shareholders would be virtually wiped out, but that the companies would be able to continue functioning with the government generally standing behind their debt, people briefed on the discussions said.

It is not possible to calculate the cost of any government bailout, but the huge potential liabilities of the companies could cost taxpayers tens of billions of dollars and make any rescue among the largest in the nation’s history.

It is interesting how swiftly the Bush-McCain Republicans moved to bail out the millionaires at Bear Sterns but have kept hitting the brakes when the issue of average American mortgages have been in play. It's like they're a bunch of rich guys who don't care about the rest of us.

Or something.