Thursday, July 24, 2008

$25 billion for Fannie and Freddie?

Twenty-five billion dollars. $25,000,000,000. $82 for every American.

Privatizing profits and socializing risks is an excellent plan--if you're on the profit side. It's a dirty deal otherwise. This looks like a no-strings bailout for stupid behavior.

I haven't fully thought through this, but what would happen if we nationalize them, split them up into about ten companies, and then sell them off taking them completely private? No more bailouts. No more preferential treatment. Just good banking practice.


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