Are We Near the Bottom of the Housing Slump? A lot has happened since the beginning of the year in the housing and lending industries. Credit markets remain choked, limiting lending and keeping the housing marketing depressed. Big financial institutions like Bear Stearns and a number of hedge funds have failed to meet financial margin calls and have closed or been absorbed by healthier companies. Companies still struggle to measure the value of their financial assets as the exotic risk-sharing strategies of the early 21st Century failed to dissipate the risk. On the other hand, the Federal Government has taken significant action to keep financial markets liquid, with the Federal Reserve cutting its interest rates and providing a reliable source of funds to financial institutions who can no longer find funds through traditional channels. Congress has expanded the mandates of Fannie Mae and Freddie Mae, the two big providers of liquidity to the mortgage market, and has passed a tax rebate to help consumers.