Old News: The Fannie & Freddie Bailout…. & GM expected to announce job cuts today

7:01, Tuesday — Reading today’s headlines, left me shrugging my shoulders and thinking, “What else is new?”

First up is The Wall Street Journal’s lead report on how Treasury Secretary Hank Paulson was at the helm in overseeing the “rescue plan” of Fannie Mae and Freddie Mac. Yadda-yadda-yadda, I think I was ahead of the Journal last week when I posted that I felt I was the only person who realized that Fannie and Freddie were basically insolvent, while the Journal and other business mediums skirted all around the truth. Now, I’m not saying no one else noticed — it’s just that the mainstream media simply reported Fannie and Freddie stories, without tying it up in a bow and delivering the bitter truth.

And does is really warrant the lead front-page coverage the Journal is giving it today that Paulson would be, and should be, at the helm of crafting what essentially comes down to a government bailout?

Hey, I’m willing to give kudos to Paulson for what the Journal reports was his initiative to see the writing on the wall a couple of weeks ago when he began to craft a plan; but while everyone is hailing the plan for rescuing Fannie and Freddie — and contemplating what it means for the government to play a larger role with Fannie and Freddie — I sure hope I’m not the only one who thinks that despite the government helping with so many of the financials from Bank of America’s role in rescuing Countrywide, to IndieMac…. or should I say IndieMac Federal… to now Fannie and Freddie — we’re treading in some very dangerous territory with the fed having so much control over financials.

And lookiing at the Dow, Nasdaq and S&P this morning — which are all down — it doesn’t appear too much confidence has been restored to the street, yet.

Next up, the Journal is reporting how mortgage insurers are making it more difficult for people to purchase a home sans mortgage insurance. Umm… gee… I think I posted an interview with a spokesperson from Genworth Insurance over two months ago on this same issue.

In other news, CNBC is reporting this morning that GM is expected to announce later this morning they will have job cuts. With the economy the way it is, and people feeling the pinch at the pump, and those who are buying new vehicles tending to go for smaller models — is this really a surprise?

The usual disclaimer: Don’t base any of your investment decisions on anything you read in my blog — do your own due diligence, or hire a professional to do it for you.

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