Reading a WSJ article this weekend on Obama's take on the FNM/FRE situation, let me refer to this and say I am confused:
Sen. Obama also said he has been closely monitoring the financial health of mortgage providers Fannie Mae and Freddie Mac. Concerns falling home values may require a government bailout prompted a Wall Street sell-off Friday before markets recovered. "There are a lot of different definitions of what a 'bailout' would look like," Sen. Obama said. "There are issues related to the short-term liquidity -- can they borrow money? -- versus issues related to whether the underlying assets of the two corporations are really unsound. And I think we need to watch carefully and see how it plays out before we make a decision about which steps need to be taken."
Now I am politically left and have been planning on voting democrat for the next President, but I am confused here. What does 'And I think we need to watch carefully and see how it plays out before we make a decision about which steps need to be taken.' mean? Does that mean lets see if Fannie Mae and Freddie Mac fail on their own, and if they do, then invoke protective measures (as were done today proactively by Paulson)?
I'm confused. This looks like ambigious political-speak to me, and I'm a tad concerned. Someone, please educate me on what Obama means.
Did you like this article?
Submitted By 
's
