It's not looking good for Fannie and Freddie
According to a CNN report this morning, there may be a government rescue in the offing for mortgage finance giants, as they struggle with losses. Fannie Mae and Freddie Mac are continuing to drown in credit losses, and there are concerns their ability to raise needed capital may be hampered
The complete article is linked here:
http://money.cnn.com/2008/08/20/news/companies/fannie_freddie_rescue.ap/index.htm?eref=ib_topstories
Hi Myrl, this is just one more reason the recovery will take longer than anticipated by most consumers. Nice update Myrl.
Nobody ever thinks that Fannie Mae or Freddie Mac will fall on hard times, but it's all around us.
Gary - Yes it does look like it will take precious time to heal the mortgage woes we are currently confronting.
Elizabeth -You're absolutely correct. I can't help but think when they allowed deregulation to occur in the mortgage industry, they let the foxes into the hen houses! It will be interesting to see while we are holding our noses dishing out bailouts, if reforms to the industry will come. If not, we will be experiencing deja vu' all over again, a few years down wind!
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