Is Freddie Mac and Fannie Mae going under?
Everyone is getting concerned about our banking system. I believe it is with good reason. If you are watching the news lately, banks are going out of business all over the map. This is due to the stocks of some of these banks are causing a reduction in the amount of assets they have to fund loans. If you have noticed lately Freddie and Fannie have both lost billions in liquid cash since last December. Most of this liquidity problem is because investors are dumping their stocks with these particular funds. Freddie and Fannie both are backed by our government. I assure you that the government will not allow these investment bankers to go under. The government if need be will bail them out. Obviously more intense credit score restrictions are around the corner. The Bush administration recently said that a government take over is not needed. Law makers aim to pass a bill that will keep these companies afloat. So stay tuned to this. Fannie Mae and Freddie Mac both own or guarantee about hal
