This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Dumbest of This Week's 5 Dumbest: The Never Ending Fannie-Freddie Bailout

NEW YORK (TheStreet) -- Fannie Mae and Freddie Mac's never-ending bailout was considered the dumbest thing on Wall Street this week by readers of TheStreet.

As of late Friday, about 38% of the more than 215 readers that took our poll thought that the government's plan to give Fannie Mae and Freddie Mac more bailout money is a particularly bad idea.

On Thursday, the government announced that the estimate for the Fannie and Freddie bailout would more than double the original bailout package in the next three years, possibly reaching as much as $215 billion.

The White House spent the week touting the success of the Troubled Asset Relief Program, or TARP, projecting losses would come down to $50 billion, down from a previously estimated $341 billion earlier this year. Unfortunately, while TARP costs go down, the cost of keeping Freddie and Fannie solvent is skyrocketing.

On Wednesday, the New York Federal Reserve teamed up with money management giants Pacific Investment Management, Blackrock (BLK), and Freddie Mac, in demanding that Bank of America (BAC) and Bank of New York Mellon (BK) buy back mortgage-linked loans that Bank of America mortgage lender Countrywide Financial failed to service properly.

The National Association of Attorney Generals representing all 50 states is investigating suspect foreclosure practices at the big banks, leading Bank of America, JPMorgan Financial (JPM) and PNC Financial (PNC) to suspend foreclosure proceeding in at least some, if not all states.

The Obama administration is expected to propose replacing or reshaping Fannie and Freddie early next year.

With approximately 29% of votes, Fox pulling access to its channels from Dish Network (DISH) and Cablevision (CVC) was voted the second-dumbest thing on Wall Street this week.

News Corporation's (NWSA) Fox network continues to play hardball in its negotiations with the cable outfits that distribute its content.

Last week, Fox pulled access to 19 Fox regional sports channels from the Dish network after their agreement expired on Oct. 1. Then Fox pulled its programming from Cablevision, keeping more than 3 million sports fans from watching both the New York Giants football game as well as baseball's National League Championship Series last weekend.

>> Fox-Cablevision Standoff Continues

Predictably, no progress has been made between any of the parties and with pressure mounting, many feel that it's time for the FCC to step in and take action.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,904.78 -10.29 -0.06%
S&P 500 1,962.57 -2.11 -0.11%
NASDAQ 4,402.0320 +5.8280 0.13%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs