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WASHINGTON - The last thing the Bush White House and the rest of the country needed in these economically trying times was another financial crisis. But they got one.
The Republican administration and Democratic-run Congress now are facing the possibility that mortgage giants Fannie Mae and Freddie Mac, once staid and stable, could need a bailout or even go under."
Related
"IndyMac Seized by U.S. Regulators Amid Cash Crunch"
Bloomberg.com - 21 minutes ago July 11 (Bloomberg) -- IndyMac Bancorp Inc. , the second- biggest independent U.S. mortgage company in 2007, was seized by federal regulators after it failed to raise cash amid the worst housing crisis since the Great Depression.
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This is like 1929 except for the very big difference that now most of the money in banks is insured by the govt.But this will cost taxpayers a lot and the snowball affect of all this on the mortgage lenders and banking system as shown in the 1st post on fannie mae and freddie mac may be profound.The federal govt may find this all hard to cover with the existing amount of funds they have in the insurance funds.
WASHINGTON - The last thing the Bush White House and the rest of the country needed in these economically trying times was another financial crisis. But they got one.
The Republican administration and Democratic-run Congress now are facing the possibility that mortgage giants Fannie Mae and Freddie Mac, once staid and stable, could need a bailout or even go under."
Related
"IndyMac Seized by U.S. Regulators Amid Cash Crunch"
Bloomberg.com - 21 minutes ago July 11 (Bloomberg) -- IndyMac Bancorp Inc. , the second- biggest independent U.S. mortgage company in 2007, was seized by federal regulators after it failed to raise cash amid the worst housing crisis since the Great Depression.
Premium Link Upgrade
This is like 1929 except for the very big difference that now most of the money in banks is insured by the govt.But this will cost taxpayers a lot and the snowball affect of all this on the mortgage lenders and banking system as shown in the 1st post on fannie mae and freddie mac may be profound.The federal govt may find this all hard to cover with the existing amount of funds they have in the insurance funds.
