Congressman and financial policy wizard Barney Frank (D-MA) is sanguine about these takeovers. He thinks that Treasury Secretary Hank Paulson is taking the right steps and will steady and balance Freddie and Fannie.
My own view is that when the U.S. government — in a time when a not-centrist-at-all Republican occupies the Oval Office — seizes and nationalizes a publicly held firm, then we all had better tighten our belts.
This is not a sign of economic stabilization. It’s a whopper foreshock of more serious problems ahead.
— Steve Clemons