http://money.cnn.com/2008/09/06/news/economy/fannie_freddie_paulson.fortune/index.htm?postversion=2008090615
http://biz.yahoo.com/ap/080906/mortgage_giants_what_went_wrong.html
With some of the most recent headlines out in the news this weekend, a bailout is expected any time with Fannie Mae and Freddie Mac. Part of it comes down to saving them before they crash on the stock market. They don’t think they can raise enough money at this time based on news stories. The bond market isn’t really reacting to Paulson. Many just say that Fannie and Freddie are over leveraged and due to houses going down in value it’s hurting their assets. This bailout is expected to cost taxpayers billions of dollars. Someone said last week said they are part of 80% of all loans being done at this time. Also it’s been said they have 1/2 of all home loans in america backed by them. They are big, 5.2 trillion, is what I hear. This is very big news, I am curious to see how it plays out, many shareholders may get little or nothing according to reports in the news. I still don’t know if the American public understands the magnitude of businesses this size going under. Let’s watch the news this coming week and see how it plays out. The stock keeps going down 21%+ many days from the previous days value. After consistantly doing that for awhile it’s obvious those on wall street are losing their confidence in these large companies, so someone now has to step in.
