Archive for December 30th, 2008


Federal Failout

So far we haven’t talked much shit about the federal bailout here at TheDrinkTank. A lot has been posted elsewhere, but today’s news is too much.

The Fed has chosen 4 firms to manage $500 billion. One of them is Goldman Sachs. Yep, they dug this hole and are now expected to blow more money filling it.

On top of that, they are only allowed to purchase loans insured by 3 agencies. One of them being Fannie Mae. Didn’t we already run into trouble here?

Two big strikes. The stipulation that they only purchase fixed rate mortgages is good, although it will still leave a lot of bad paper out there.