Gov't "takeover" of Fannie and Freddie

This is quasi-pitworthy, but a little too serious for that. What’s all this about a government takeover of Fannie Mae and Freddie Mac? “Takeover” conjures up images of feds in dark suits storming the headquarters, rifling through file cabinets, browbeating employees into cooperation, and marching shamefaced bosses off to PMITA prison. You even have people questioning the legal basis of it all.

In reality, it’s the biggest economic bailout of all time, way bigger than the S&L fiasco. The government is volunteering its own shaky credit as a backstop for some of the most ridiculously crappy and ill-conceived loans ever…conceived.

We can argue over whether the bailout was the right thing to do, but calling it a takeover is letting ignorance win before the debate even starts.

And lo, even as I have said it, it has come to pass. The headline in the link for the word “of” was changed from takeover to bailout between when I linked it and previewed it. They must have seen me coming.

On the way to work I heard the CEO and CFO have golden parachutes to the tune of 14 million and 9 million respectively. The Treasury should send them a bill for their services.

IIRC from the article I read (not one linked above) the two entities are going into a form of receivership. This I believe means that neither entity can take any action that isn’t approved by federal overseers. Sounds like a takeover to me. It’s also a bailout and may be the final straw, but “takeover” is a perfectly cromulent descriptor.