GM: General Mess

Time for bit of a rant on General Motors since they are all over the news this week. The issue at hand is whether the government ought to save GM by providing at least $25 billion in low cost loans to the automaker. As expected, there is vigorous debate on the subject and it is rife with emotional arguments.

Unprecedented Government Bailout

My title is just one way to put it. "Fannie/Freddie Shareholders Wiped Out" is another. Over the weekend, the U.S. Treasury announced it's plan to take over Fannie and Freddie to prevent bankruptcy and shore up the mortgage market. Basically, the government effectively now owns Fannie/Freddie and is using the taxpayer's balance sheet to keep the world's financial system from complete meltdown.