The United States Government laid another $5,000,000,000,000 in potential liability on the shoulders of the taxpayers with the seizure of Fannie Mae and Freddy Mac, the two giant mortgage companies that were so poorly run by the private sector, in a 10 year attempt at privatization, that they are in danger of collapsing.  Investors in the companies will cease to receive dividends, and any worth of common or preferred stocks will be eliminated.

 The drastic measure was deemed necessary to prevent Freddy and Fanny from defaulting, which would have a major negative effect on the national economy.  I’m pretty sure the takeover will NOT have a good effect on the economy of the taxpaying public, either.  I guess anyone who bails out of a mortgage will end up OK, but someone (can you say  ’taxpayers’?) will have to pick up the tab.  Seems grossly unfair to me. 

What do you think the government should have done?  How could this great of a problem have gotten past federal watchdogs for the past few years?  I assure you it did not go South overnight.

Should the taxpayers have been made liable for the ineptness of the private companies which took over ten years ago?  

Any and all comments are welcome!!