Fed can lend to just about anyone - Marketwatch 7/11 - Nutting

Submitted by Ben Burrows on July 12, 2008 - 10:52am.

http://www.marketwatch.com/News/Story/Story.aspx?guid=4127a735edf448b6a9...

Rex Nutting, Marketwatch Washington Bureau chief, appears to be under
the impression that FNMA (Fannie Mae) and FRMC (Freddie Mac) are the
equivalent of a typical United States citizen ("your Aunt Mabel").
Granted they are not chartered as commercial banks, because they are
more powerful and more specialized than your typical commercial bank.
They function, nonetheless as specialist commercial banking entities. It
is simply foolish to say that it is all right for the Fed to bail out
Citibank and Bear Stearns, but not to bail out Fannie Mae and Freddie
Mac, who are saddled with cleaning up the commercial banks' detritus.

Ben Burrows
406 Shoemaker Road
Elkins Park, PA 19027
215-266-2029

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