Sorry to be a bit heavy on Fannie and Freddie, but this is a historic event.
These statements came in a five paragraph section in a New York Times article:
Mr. Paulson added a mantra of his own: he privately said he didn’t want to “kick the can down the road” and leave the problems for a future administration and Congress to solve….
As possibilities were debated, Treasury officials eventually concluded that if they had to act, the best choice was a conservatorship…
“They called it ‘sticking the companies in a timeout,’ ” said one person with firsthand knowledge of the conversations. “It protects the safety and soundness of the economy but also gives everyone breathing space.”
Now most commentators see a conservatorship as a good bit more radical than the depiction above. But let’s take the quotes at face value. Paulson said he didn’t want to “kick the can down the road” but settles on a plan that his team called a “timeout”.
Wow. No wonder this Administration is so good at Orwellian tactics. They practice them at home.