Fannie Mae and Freddie Mac Crash - Again
More worries that the U.S. Government (i.e. you and me the tax payers) will have to pony up billions to keep Fannie Mae and Freddie Mac alive drove the stocks of these companies down 22% and 25%, respectively yesterday.
Last week Fannie Mae and Freddie Mac came out and said they would try to preserve capital by not buying as many mortgages. Well, that goes against the charter they have by the U.S. Government pseudo public/private charter.
For more insights as to what may happen, the Wall Street Journal has published its lead editorial on the matter today.
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