User profile

psychron

Senator Ensign worries about bailing out companies who loaned to people who are facing foreclosures, or is he too hard-hearted to be concerned about those who are soon to be homeless?

As I understand, Freddie Mac and Fannie Mae are quasi-governmental "companies" whose loss would result in a complete revamping of the mortgage loan system, and a possible total collapse of the economy. These two "companies" are responsible for something like 10 trillion dollars in mortgage loans, and have about a 1.5% failure rate. These losses aren't unusually high, they are about like any good bank experiences. Lack of governmental regulation, as supported by Senator Ensign, is the basic culprit, with support given by short-seller speculators who helped depress the investment capital. He should take the responsibility for his error in judgement and do something to correct the situation, not just wring his hands and vote like any other partisan politician.

By the way, how did he feel about the Bear Stearns bailout? Did he want to help bail out these crooks for 30 billion of our dollars, or did he say he didn't believe in bailing out those who engage in irresponsible lending practices?

Ron Anderson
Las Vegas