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Its Government Time

By: TraderMark Monday, July 14, 2008 2:33 AM

Sectors: Consumer Staples , Finance
Symbols: BSC, FNM, FRE, NYT

It's Sunday night in socialist America - that can only mean one thing. It's government time! They are starting even earlier than Bear Stearns (BSC) bailout Sunday. Another night of hitting refresh on CBSMarketwatch to watch the actions one after the next.

WSJ: Treasury to Issue Statement Supportive of Mortgage Giants

Treasury officials this evening are expected to announce several measures aimed at shoring up confidence in Fannie Mae and Freddie Mac, according to people familiar with the situation.
The Treasury announcement is likely to discuss the availability of a line of credit for the companies if needed and an indication that the government might buy equity capital in the companies in a pinch, these people said.
The Fed is expected to make a separate statement regarding the near panic that has slashed the value of Fannie and Freddie shares by nearly half over the past week.
All told, the announcements, crafted during a series of weekend discussions, represent a broad attempt by the federal government to do everything it can short of an actual intervention to prop up the two stockholder-owned, government-sponsored companies, whose operations are vital to the functioning of the U.S. housing market. (key words = prop up)
Monday's markets will bring a big test of the two companies" financial health when Freddie Mac is due to sell $3 billion of short-term debt. An unsuccessful sale could be a major blow to investor confidence.
Treasury officials and other regulators have been calling potential buyers of the debt over the weekend to gauge their interest and urge them to participate, according to people familiar with the matter. ("free market" baby)

The past year has been amazing to watch China move to capitalism, and America move to socialism.