Wanted: Legitimate Reasons to Bail Out Fannie and Freddie Stockholders

By Dean Baker

From tpmcafe.talkingpointsmemo.com

July 23rd, 2008

tpmcafe.talkingpointsmemo.com — Okay, we all know the argument for bailing out Fannie and Freddie bondholders. But, why are we bailing out the stockholders? After all, aren't stockholders supposed to lose their shirts when they invest in a bankrupt company?

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Wanted: Legitimate Reasons to Bail Out Fannie and Freddie Stockholders