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164 comments on Freddie Mac/Fannie Mae bailout: Guess Who Wins

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Jason Bradford on September 7, 2008 - 7:13pm Permalink | Subthread | Parent | Comments top

This is along the lines I was thinking. The government is "printing" the extra money needed for these banks. Through this additional injection of money into the system I'd expect the dollar to weaken and inflation to continue to increase, unless demand is somehow curtailed at the same rate that money is being created.

It would be helpful to talk in terms most people can understand. So my question is: What does this move do to the purchasing power of an American family with about the median income over the next few months to few years?

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nh3 on September 8, 2008 - 12:03pm Permalink | Subthread | Parent | Comments top

What does this move do to the purchasing power of an American family with about the median income over the next few months to few years?

no matter whoever takes whatever moves, either the income will be diminished (through the massive unemployment and diminished economic activities brought on by the deflation) or the purchasing power of the income will be diminished (through the inflation).

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164 comments on Freddie Mac/Fannie Mae bailout: Guess Who Wins

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