US Government May Take Over Fannie and Freddie
The US Government is considering forming a “Conservatorship” to take over Fannie May and Freddie Mac, according to the New York Times.
This would be the biggest news of the year. It would be great for the financials and the markets in general. However, in the end, it is the taxpayer that would be footing the bill to cover all of these foreclosures and such.
“Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers.”
Only time will tell. Will be interesting what we hear tomorrow.
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