What could happen to the economy if Freddie...

[Agatha]

...Mac/Fanny Mae aren't "rescued" by the government? CNN estimates that it will cost taxpayers 25billion to rescue FredM and FannyM. Feds assert that bailing out these companies is imperative to the economy but don't go into details.

So what in your opinion, would happen if the feds don't bail these guys out?

[wihntr]

They would fail then someone else would pick up there customer base.
Standard capitalism. I wish the Govt, would let them fail.

[Clayton J]

Industrial and Technical Economics yield numerous benefits. Among these benefits is an opportunity to salvage errors in policy and spending. Corrections have provided an ethical dilemma for business and political leaders. The matrix of possibilities for any given economic event is relative to planning and policy.

Accrued wealth is a tangible intangible upon which many decisions are made. Corruption is a hazard when the complex denominations of human and material resources offer profitable opportunities to special interests. The concept of being protected from failure has been learned and studied by some in leadership positions of private and public sectors.

Recovery from financial scandals and drains upon the federal treasury have demonstrated a resilience upon which corruption feeds. The well of wealth is essentially always half full. When it is drained, like an aquifer it replenishes.

Fannie Mae and Freddie Mac are bailout programs from the beginning. They are accounting structures to measure and monitor real property access of Mainstream America. The safeguards of these federally funded programs are what corruption has been feeding upon. Someone is profiting from these paper losses and write downs. Greed has become very sophisticated.

It cost taxpayers nothing. Industrial and Techincal Economics identify how access to wealth is explained to maintain an almost feudal caste structure. Industrial wealth is accrued by the excess production of labor. Industrial economies can spend more than the tax revenues collect based upon continual growth. The target of how much is enough is a sometimes dubious nebula.

Explaining wealth in financial terms to which Mainstream American can relate allows wealthy elite and a leadership class to monitor access to excess production. Most people are so consumed by the redundant treadmill of earnings and taxes that the machinations of the financial marketplace become too overwealming to understand. Financial double speak keeps Mainstream America working and guessing.