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Fannie & Freddie Bailout Good for the Dollar?
Original post made
by Dollar wonk, Embarcadero Oaks/Leland,
on Jul 22, 2008
Taxpayers will shell out $25 billion to bailout loan-mortgage companies Fannie Mae and Freddie Mac. This is on top of the Bear Sterns bailout, the Iraq war, and the stimulus checks. The dollar has already fallen to multi-year lows because of the exponentially rising national debt. Is the solution to simply create more debt? While failures of Fannie and Freddie cannot be good, bailing them out cannot be good for the dollar, or can it?