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Cartoon: Fannie Mae & Freddie Mac

Cartoon: Fannie Mae & Freddie Mac view photo

14 votes

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Comments (2)

  1. The FMs should either be fully private or fully public. The current setup of shareholders get paid when the going is good, but taxpayers paying for the bailout when the so-called private company screws up is not cool.

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  2. Ten Bear Market Phases

    1. A huge 'buy the dip' mentality sets in during the initial decline. Most party goers cannot fathom that party has ended.
    2. Moderate concern sets in when 'buy the dip' stops working.
    3. Initial panic.
    4. Numerous bottom calls are made, all wrong.
    5. Search for the guilty.
    6. Punishment of the innocent.
    7. More panic.
    8. Lawsuits fly.
    9. Regulatory power is given to those most responsible for spiking the punch bowl.
    10. Congress gets in the act and makes things worse

    Steps 4-10 are repetitive, may overlap, and may occur in any order during repetition. Certainly there have been numerous bottom calls for months now, but each rally has failed.

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88882_24 s_lockyer submitted this on July 26, 2008.