Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers.
The Federal Reserve Act of 1913 was and is unconstutional. Milton Freidman won the Nobel Prize in economics for showing how actions by the Federal Reserve led to the Great Depression. The Federal Reserve took on bold new powers when they got involved in the Bear Stearns buyout, which turned into a windfall for JPMorgan Chase and a huge burden to the American taxpayer…JPMorgan Chase got a firesale price on the resources of a former competitor, and we the people got Billions of dollars in debt.
Now the Federal Reserve wants to takeover Fannie Mae and Freddie Mac.
Call your congressman and senators, and Just Say “No!”
There is no good reason for stockholders to once again get next to nothing for their stock and for the taxpayers to assume staggering amounts of debt. The only winner in this situation would be the Federal Reserve.
I pray for President Bush to have wisdom and eyes to see what’s going on here.