World’s biggest bail-out: update

Arnold Kling wonders: what is the exit plan?  Brad DeLong and John Hempton think the Bush Administration showed some courage.  Brad thinks the preferred stock can do OK.  Here’s what forced Paulson’s hand.  All lobbying from the agencies has been eliminated.  WSJ reports: "House Financial Services Committee Chairman Barney Frank (D., Mass.)
said in an interview that the near-term effects of the conservatorship
will be to "strengthen the public mission of what they do" to prop up
the housing market."  Preferred shareholders lose dividends.  CalculatedRisk has the clearest bottom line so far.


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