Fannie Mae and Freddie Mac shares were on the rise in stubborn opposition to a down market on news of they have completed a multi-billion dollar debt-sale, and the news coincided with presidential hopeful and democratic nominee apparent Barack Obama’s statement today where he reiterated his support for the trouble GSE’s and the as-good-done GSE Bailout which will be funded on the backs of the nation‘s taxpayers:
“I think long-term what we have to do is, we have to go ahead and make a decision, if these are public entities, then maybe they ought to get out of the profit-making business… and if they’re private entities, that we don’t bail them out,” Obama said.
“We’re going to have to structure that carefully how we make that transition in order that we don’t get the housing market even more spooked than it already is,” he continued.
Regardless of what the Treasury says about the likelihood of a bailout for the beleaguered GSE’s, you can bet the decision has already been made, but there are a great deal more issues in play than the players want to discuss, and there will be more casualties than any of them will ever admit.
It’s the grand soft-peddle – don’t get fooled!