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Congrats on your home purchases.


US Gov't takes over mortgage giants.

The Bush administration seized control Sunday of troubled mortgage giants Fannie Mae and Freddie Mac, aiming to stabilize the housing market turmoil that is threatening financial markets and the overall economy.

Treasury Secretary Henry Paulson is betting (with your money) that providing fresh capital to the two firms will eventually lead to lower mortgage rates, spur homebuying demand and slow the plunge in home prices that has ravaged many areas of the country.

The huge potential liabilities facing each company, as a result of soaring mortgage defaults, could cost taxpayers tens of billions of dollars, but Paulson stressed that the financial impacts if the two companies had been allowed to fail would be far more serious.

*They are "too big to fail", but you'll be happy to know that you're still small enough to be allowed to.*

Entry #157


time*treatComment by time*treat - September 7, 2008, 7:27 pm
MBS = "mortgage-backed securities" or More Bull-Schmidt.
Rick GComment by Rick G - September 8, 2008, 7:59 am
Why are the American taxpayers subsidizing Fannie Mae & Freddie Mac shareholders? Is it because China has so much invested in them? None of these bailouts are benefiting the taxpayer who is paying for them.

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