Fast Talk

While they both are stockholder-owned enterprises, they are federal government-sponsored programs. Even though they are not explicitly government-funded, the U.S. Government, in times of crisis especially, should be responsible in some way for trying to save the program, or find a suitable alternative for American home-owners to the enterprise.

I don't think the government has the responsibility to bail out these companies, they just understand the ramifications of the failure of large financial institutions. They do have the obligation to protect the public that depends on the institution since the legislation and governmental regulation failed to ensure fair-play and hnoest business practices among financial institutions in the first place.

Sadly, yes, due in large part to the regulatory failures of the US government throughout this crisis. Where were the regulators when what were effectively mortgage salespeople were issuing loans to people they knew had no chance of repaying them? Where were the regulators when i-bankers were making silk purses from sow ears by repacking questionable securities into even more suspect loan pools in a futile attempt to mitigate default risk? Where were the regulators when credit rating agencies like Moody's and S&P were doling out investments investment rather than speculative grade ratings to these mortgage pools?

"The government" is us, the people, according to the Constitution. Bailing out the FM's is about helping people keep their probably-oversize houses and mortgages, which is not 'green' and siince I'm not much in favor of 'not green'.. I do believe they need considerable reorganization, and they need it "last week or before", no matter what.

As with most things it is not a yes or no answer. It depends on the impact their failure would have on the public at large. And someone needs to be held accountable for the mess they caused. Too many greedy executives run companies into the ground and still reap rewards. Bad form.

While government is not obliged to perform the bailout, in an effort to stave off the "R" word and to shore up the economy, this is good for business. Remember Chrysler and that episode?

Yes and they should sue the hell out of the people that caused this problem and put a few people in jail. The list includes greedy commission salesman, lenders who are bottom line driven, real estate appraisers and the title companies that take kickbacks.

No, however the consequense of letting the crisis drag on would be so destructive to the financial position of the US in the marketplace that it has to intervene.

No! Given the current administrations belief that competition drives prices down, competition should also allow companies to dry up. Truth is the mortgage business is oversaturated, unregulated and unfruitful. I personally would like to see at 70% - 80% reduction of mortgage lenders and personal accountability extended to the mortgage brokers themselves to the extent that they should take out insurance for the loans the sign.