Tech will suffer from financial meltdown

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One thing that could be done...: ...would be for the federal government to sell Fannie Mae, Freddie Mac, and any other firms it "acquires" back to the public once they stabilize (would allow the taxpayers to get at least some of their money back). In the mean time, let the Federal Reserve administer them as they think proper (there should be some independence from the Administration). In the case of Fannie and Freddie, it might be a good idea for the feds to hold onto minority stakes in each (maybe 10%) as a way of reducing the probability of future rescues, by giving the Fed a voice, and establishing a price for federal involvement. The US government held 20% stakes in both Banks of the United States during the late 18th and early 19th centuries, so there is definitely precedent.

Under no circumstances should commercial organizations get relief below market prices (this should be strictly business); after all, we taxpayers deserve some sort of return on our investments too. The feds should do what they have to to keep the financial sector afloat, but there should be real consequences for bad business decisions, to include losses of jobs and/or investments on the part of those responsible. The goal of government in this case is to prevent economic collapse (no, we don't need any more Great Depressions, thank you), not to rescue irresponsible investors or their bankers.; Posted by: John L. Ries Posted on: 09/17/08 (Edited: 09/17/2008 @ 01:57) You are currently: a Guest | Members login | Terms of Use