No Rescue Plan?

From the New York Times:

The Treasury secretary, Henry M. Paulson Jr., said Sunday there are no plans to use his new authority to inject capital into mortgage companies Fannie Mae and Freddie Mac, which both posted worse-than-expected earnings last week.

Mr. Paulson and Congress brokered a plan last month to bolster the two government-sponsored enterprises that includes giving the Treasury the right to buy their shares. “Given that Fannie Mae and Freddie Mac are solely involved in housing, that’s their sole business, and given the magnitude of the housing correction we’ve had, it’s not a surprise to me to see those losses,” Mr. Paulson said.

Mr. Paulson, former chairman of the Goldman Sachs Group, also said he would not stay on as Treasury secretary after President Bush’s term ends in January, regardless of who is elected president in November.

Mr. Paulson said the financial problems at Fannie and Freddie underscored his view that the housing crisis remained the biggest threat to the nation’s economy.

“Let’s see how this program works in the third quarter,” Mr. Paulson said.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (, he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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