U.S. seizes Fannie and Freddie
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U.S. seizes Fannie and Freddie
| Sun, 09-07-2008 - 8:51pm |
U.S. seizes Fannie and Freddie
Treasury chief Paulson unveils historic government takeover of twin mortgage buyers. Top executives are out.
Treasury chief Paulson unveils historic government takeover of twin mortgage buyers. Top executives are out.
http://money.cnn.com/2008/09/07/news/companies/fannie_freddie/index.htm?postversion=2008090711



I don't know much about it, so correct me if I am wrong, but I was under the impression that our whole economy is tied into Fannie and Freddie, and if we let them fail that our whole economy would fail.
Bailout of mortgage giants should result in lower mortgage costs and make credit more available. But lending standards will stay tight and risky borrowers will still pay extra fees.