Quote:
Quote by: Clarence  |
I talked to one of my clients on this, who is the CEO of a mid-sized student lender. His prospective is: that first America just double its already inflated national debt. Something that America really couldn't afford to do. With this the value of our dollar will shrink even more. Something we couldn't afford either. With both of those things happening the Fed will have no choice but to raise interest rates, meaning less lending, more floreclosures, less refinancing and a bigger hit to the already shot housing, auto financing and credit industry. That said he mentioned it would be 10 fold more chaotrosophic it we let Fannie Mae and Freddie Mac fold!
This decision was like picking between getting a steel boot kick in the balls (the takeover) or a blindsided aluminum bat to the head (letting FM and FM fold).