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Inside Wall Street: The Fannie Mae/Freddie Mac Bailout is Necessary - But Don’t Expect a Happy Ending

Money Morning (July 14th, 2008) Writes:
By Shah Gilani It’s the end of the "American Dream." It’s the story of how the inevitable bailout of insolvent housing giants Fannie Mae (FNM) and Freddie Mac (FRE) - with the Federal Housing Administration soon to follow - will ultimately lead to such sorrowful sequels as "TheDeath of the Dollar," "The Downgrading of U.S. Government Debt" and, yes, "The Depression." Let’s be very clear on one point, however: There’s no question about it - Freddie and Fannie have to be supported. If the doctrine of "too big to fail" didn’t already exist, it would have to be invented - immediately. Although many are arguing against a "bailout," those "experts" never seem to address the fallout that would emanate from such a strategy. Nor do they ever discuss the sad series of events that brought us to ...

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