US Government Bails out Fannie and Freddie

$100 Billion, yes, with a “B”. Over the weekend, the US government takes over the two huge mortgage guarantors. Until now, they were sanctioned by the government, but this morning, the language is much stronger. We own them now – you and me – and we’ll vote for their new president on November 4th. And by the way, the $100 Billion is likely to be invested in each of the companies, not the two combined.

Notable Quotes from the Article:

“These necessary steps will help strengthen the U.S. housing market and promote stability in our financial markets. Bernanke said”

“James Lockhart, the head of Federal Housing Finance Agency which will now oversee Freddie and Fannie, said that the recession in the housing market ultimately ate away at the two firms’ capital.”

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