World-News

The country's two biggest mortgage companies were nationalised amid fears that their bankruptcy would have triggered an economic collapse.

http://tinyurl.com/5krsuj



Why U.S. moved on mortgage giants

The proposal to place both mortgage giants, which own or back $5.3 trillion in mortgages, into a government-run conservatorship also grew out of deep concern among foreign investors that the companies' debt might not be repaid.

http://www.iht.com/articles/2008/09/07/business/fannie.php



China frets at US risk after Fannie/Freddie bailout

The U.S. Treasury's takeover of Fannie Mae and Freddie Mac is good news in the short term for China, the biggest holder of the giant mortgage lenders' debt, but Beijing's huge U.S. exposure still poses a serious risk, a prominent government researcher said on Monday.

http://www.guardian.co.uk/business/feedarticle/7781955



US Bailout of Mortgage Giants Sets Stage for Wider Financial Crisis

By Barry Grey

On Tuesday, the Congressional Budget Office (CBO) declared that as a result of the government bailout, the finances of Fannie Mae and Freddie Mac had to be "directly incorporated into the federal budget," and its liabilities added to the US national debt. This means, in effect, a near doubling of the US sovereign debt to a figure equivalent to the country's gross domestic product (GDP).

http://www.informationclearinghouse.info/article20744.htm


From Information Clearing House

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Stop the Bailout
http://www.lewrockwell.com/rockwell/stop-the-bailout.html



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