Democrates Fail to Pass Bailout!

Never was there a day when it became so obvious that there is simply a lack of leadership in Washington ,folks the House of Representatives is majority rule ,the Republicans members didn’t need to show up the Democrats have enough of a majority to pass anything they want ! The fact is that Democrats failed to get there own members to support the bailout bill, END of story! It wasn’t even close .

What a difference a day makes?

What a difference a day makes? A FED bailout tosses Freddie and Fannie shareholders under the bus. While investors ask is it really over? Is this a fundamental turning point for the financials? It is certainly a boost short term for both bond and stock markets. But weather a government bail out fixes the fundamental problems of the current banking crisis, remains to be seen. For decades Fannie and Freddie provided liquidity to the US mortgage market allowing “Joe 6 pack “to take out a 30 mortgage. In recent years however both Fannie and Freddie have strayed from their original purpose according to some critics growing far to large in scope and following the industry decline in lending standards . Many including the former chair of the FED Alan Greenspan warned the Freddie and Fannie should be rained in and in time pose a significant liability to the treasury, well that day is upon us. And once again let me repeat that a government bailout of Fannie and Freddie is NO bailout for shareholders.