Unintended Consequences

By: Francis Cianfrocca (Diary)  |  October 17th at 08:48 AM  | 

There are always unintended consequences. And they’re always so easy to see in hindsight. So the government announces that banks will not be allowed to fail. What do you do if you’re a rational investor? You reason that there’s a floor under the debt-securities issued by these banks. You figure you might be able to exchange them for honest-to-goodness Treasury paper later on. So you | Read More »

The Fannie Mae and Freddie Mac Takeover: Day 3

By: Francis Cianfrocca (Diary)  |  September 9th at 09:42 AM  | 

I’m going to get into three things with you this morning. First, I’d like to address the issues raised by many respected people, in regard to the suppression of private interests by an agency of government. To do this, I’m going to fill in some of the history of Fannie and Freddie. Second, I’ll give more detail on the exact terms of the Treasury takeover | Read More »