First Congress needs to replenish the FDIC with funds or give it a blank check, and then come back to address the Paulson bailout plan.
What’s the line on Wachovia going under next week?
Older post: More problems with the Paulson “Wall Street” bailout plan
Newer post: Home Sale News is late! Sorry.
{ 1 trackback }
{ 1 comment… read it below or add one }
Brian 09.27.08 at 1:48 pm
I will give you 3:2 that Wachovia is gone by Monday. I think the deal will get done this weekend. I see that Citi is in the running, but I think Citi is too weak to get it done. My bet is with Wells Fargo.
When all is said and done, there will be 4 to 5 major American banks left and they will include the larger investment banks / brokerages. The government will be the partner to the banking industry for years as the various types of mortage and commercial loan securities are sold off or held to maturity.
Fannie and Freddie must be broken up and sold off in pieces to reduce their size and eliminate ambiguity about whether they are public or private. The Dems will fight hard against this, as the see the GSEs as their opportunity to provide home ownership to the underclass. But that has proven to be a mistaken ideology and should be completely discredited by the public.