Fannie Mae And Freddie Mac Rescue Plan

by jwbanks | July 14, 2008 at 04:25 pm | 130 views | 2 comments

Treasure secretary Henry Paulson announced yesterday that he will ask congress to help the mortgage giants Fannie Mae and Freddie Mac to get better deals on loans from the Federal Reserve as well as a support of $15 billion into the two mortgage giants.

The real estate foreclosure crisis pushed the two giants to drop more than half of their market value last week, and Wall Street has already picked up the damage and started the week on its lowest levels since since 2006.

Last week President Bush called a rescue package to aid Fannie Mae and Freddie Mac who together finance half of America’s loans.

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mgmirkin

at 17:13 on July 14th, 2008

good stuff:

jwbanks, I like this story. It's good stuff.

Interesting. And if Micro$oft or IBM or some other big company falters, will the government step in to help THEM too? Are they just into giving away money now? How do I get some (change my name to Freddie Mac, perhaps)? Do we think that throwing good money after bad investments will really do anything to save the market?

Regards,
~Michael Gmirkin