Update: Shareholders? Free market economy at an end ? America turns to "French champaign socialism" bailing out Fannie & Freddie

Update: no sharholder return priority ?

INVESTORS While it is not yet clear whether stockholders in Fannie Mae and Freddie Mac will be wiped out entirely, Mr. Paulson did say on Sunday that the entities “will no longer be managed with a strategy to maximize common shareholder returns.

America first time applies "French champaign socialism" bailing out Fannie Mae and Freddie Mac, incompatible with US law and business. Free market economy at an end ?

Asian stock markets soared Monday after Washington announced a bailout of mortgage giants Fannie Mae and Freddie Mac -- a move that could help bolster a shaky U.S. housing market and renew global investor confidence.

Jacky Choi, a Hong Kong-based fund manager at Value Partners Ltd., which manages about $5 billion in Asia, said the U.S. move comes as a relief to the many Asian governments and institutions with the mortgage giants' debt on their books.

He added, however, that Monday's surge in equities didn't necessarily foreshadow a broader turnaround and noted that trading volumes weren't very large in some markets. Many investors were still hesitant to place long-term bets, he said.

Free market economy and bail out ?

No end in sight. After Freddie and Fannie the big 3 GM FORD CHRYSLER waiting for govermnet bail out. The only way to keep the Dollar under bail out economy up, stop the soaring costs oft the Petrol war Iraq Georgia ....

No end in sight, next GM FORD CHRYSLER........

Free market economy, free trade, anti dumping, the US values going downhill the defeat of the global economy on the horizon. US will turn to national  protectionism to save the Dollar. Innovation financing not in sight. Can the house market save US economy again. The answer is no. Only the Investors already deep in the US mortgage trouble will try to push the Dollar untill they can sell the worthless mortgage papers. Inflation is the follower. The only method is to stop the soaring costs for the Irak Georgia Oil war and get back to US production investments, avoided by the Hedgefund Investors. The innovation financing to alternative fuel like Hy and electric drives for the US car industry not in sight. Investors stay aside. Government has to bail out soon the big 3 GM FORD CHRYSLER

Soviet socialism in the U.S.?
The U.S. government may have started the biggest rescue operation of history. The government will, if necessary supply Fannie Mae and Freddie Mac, each with 100 billion U.S. dollars. First, the government purchases for five billion dollars securities. The U.S., announced nationalisation of Fannie & Freddie, Congress wants to discuss it.

Manipulation of economy due to election campaigns of US president ?

But why ? For decades, it is known that the United States credit overdrafted their Living standard and the rest of the world  financed it, by buying false AAA rated securities. Why  should it change ? Why celebrating the nationalisation of a bancrupt Enterprise, under normal conditons the 2 must retreat from stock market, like Chrysler did.

GSE's Government-sponsored enterprises ?
Freddie Mac and Fannie Mae are uniquely US institutions with no direct British equivalent. The GSEs buy mortgages from lenders, package them up and sell them on to financial institutions around the world as well as at home. They also lend directly to homeowners. The UK wanted to save Northern rock too.