by Aaron + Alaine
The proper interpretation of these events is succinctly laid out by Edward Harrison at the Credit Writedowns blog, to wit....Fannie Mae and Freddie Mac would be used as a nationalization of America’s mortgage problems via a back door bailout of banks. The evidence, therefore, tends to demonstrate that we have witnessed an orchestrated campaign by the Bush and Obama Administrations to recapitalize too big to fail institutions by hook or by crook, bypassing Congressional approval if necessary.
I'm open to a hearing of the argument that what the administration has done and is doing is justifiable, however Harrison further points out some really objectionable elements about this back door stealth bailout: