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The Freddie and Fannie Bailout: Writing Investors A Blank Check With Your Money

Department of Treasury Seal

Department of Treasury Seal

So, the first "estimates" on the cost of the Fannie and Freddie bailout are out. The high end number being talked up is 100 billion. The cost will be higher than that in the end, guaranteed, and in the meantime Treasury has asked for a money without strings, to be spent as they choose. Just like in Iraq and everywhere else, it looks like Congress is agreeing. The plan is one that bails out stockholders and investors, maximizing moral risk, privatizing the profits and socializing the risk.

Business as usual, in other words.

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Ian Welsh

Ian Welsh

Ian Welsh was the Managing Editor of FireDogLake and the Agonist. His work has also appeared at Huffington Post, Alternet, and Truthout, as well as the now defunct Blogging of the President (BOPNews). In Canada his work has appeared in and BlogsCanada. He is also a social media strategy consultant and currently lives in Toronto.

His homeblog is at