Taxpayers. Where should we draw the line on federal bailouts?

The proposed government bailouts have too many zeros for me to keep up with. We now hear that Freddie Mac just posted a $25.3 billion loss in the third quarter and needs $13.8 before the end of November to cover obligations. As has been reported the federal government has pledged to provide $200 billion in aide to Fannie Mae and Freddie Mac.
It will be interesting to watch and hear the Capitol Hill exchanges between the CEO’s of Freddie Mac and Fannie Mae and members of the House Oversight and Government Reform Committee when they meet next week. The AP reports that “both companies have been asked to turn over a long list of documents and e-mail messages concerning the risks the companies took in their mortgage investments, accounting, and compensation for the companies’ former CEOs.”

A few relevant Questions.

What’s your opinion of this government bailout?

What happens if we don’t bail them out?

How do you feel about other possible bailouts such as GM and Chrysler?

Another major bailout was for that insurance giant AIG. We initially offered $85 billion only to learn that they want an additional $37.9 billion dollars.

Should there be a litmus test where some qualify for the handout and others do not?
If so how and where do we set the bar?

About Larry Gilbert