White House, Fed will rescue Fannie, Freddie
Government-sponsored lenders are too global to go down, Paulson says
The implicit government guarantee of Fannie Mae and Freddie Mac is now explicit.
In a suprising statement released Sunday, the White House and Federal Reserve moved to give the mortgage lenders the capital they need to survive the depression in the housing market in 2008 and turmoil in financial markets that had left them dangling over a cliff and ready to fall any time.
Of most immediate importance, the Fed's board of governors voted to open up its emergency discount window to Fannie and Freddie. Will this work ???? Your thoughts ??
No comments:
Post a Comment