Friday, February 20, 2009

Government Doubles Available Aid to Fannie and Freddie

The federal government has doubled the size of its commitment to Fannie Mae and Freddie Mac, increasing the guarantee against losses on their mortgage investments to $400 billion. The massive expansion of this public backstop for the troubled mortgage giants was disclosed this morning among the details of the Obama administration's plan to reduce foreclosures.

[This is government: they both failed - so we pump more money into them]

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