By Brendan Buhler

Tue, Oct 7, 2008 (2 a.m.)

When the economy zags down and financial companies drop like moths from a bug zapper, the odds are that no one knows what is going on. That, however, hasn’t stopped people from speaking with authority about the various government bailouts of the financial industry.

The government’s takeover of Fannie Mae and Freddie Mac “will get those ‘sitting on the fence’ into the market to start clearing the standing inventory of homes, which is the key to the recovery of the housing market.”

— B.J. Perez, broker-owner, Monarch Mortgage, Sparks, on Sept. 9 (Reno Gazette-Journal)

Analysis:Interest rates have declined, but so far mortgage applications have fallen, too. With the various busts, buyouts and bailouts in the lending industry, getting a mortgage is harder, not easier.

Takeover of the two institutions “basically does two things: one is inject stability into the market and another is potentially lower interest rates.”

— Wayne Capurro, president, Reno/Sparks Association of Realtors, Sept. 9 (Reno Gazette-Journal)

Analysis: No and yes.

The takeover “may have prevented a shock. You’ll also see some short-term benefit with financial markets. But this presents a real serious problem in the long run that does not bode well for the efficiency of the U.S. financial system.”

— Tom Cargill, UNR professor of economics, Sept. 9 (Reno Gazette-Journal)

Analysis: It probably prevented a Fannie and Freddie shock, although any short-term benefit to the market didn’t last the week. But there’s no quibbling with the words “real serious problem.”

“I got a feeling you will get it worked out.”

— Jim Rogers, chancellor, Nevada System of Higher Education, speaking to Sen. Harry Reid about whether Congress would adopt an economic bailout plan, Sept. 23 (Review-Journal)

Analysis: The legislation passed last week.

“Yeah, famous last words.”

— Reid’s reply, Sept. 23 (Review-Journal)

Analysis: Yup.