On September 29th, 2007, when Freddie Mac stock was trading at $60/share, Bill said this:
Freddie Mac: "Hello Congress, we’re upside down and need money."
Congress: "Hello Securities Market, we’re going to need two trillion dollars."
Securities Market: "Hello Congress, we’re going to need 15% interest."
Congress: "Hello Freddie Mac, we don’t have the money."*
Freddie Mac: "Hello Congress, we warned you about this, you should have raised our lending limits."
Freddie Mac is currently trading at around $4/share. It’s in the news today.
* Update: Call me stupid. Congress doesn’t have to go to the credit markets, especially when credit markets no longer exist. The solution is simple-just print more money.