» The Coming Bailout of Fannie Mae and Freddie Mac – Big Government

Posted on August 14, 2010

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Fannie and Freddie were once the most powerful forces in the US housing industry. They pumped liquidity into the sector by buying up mortgages written by banks and mortgage companies. That kept the cost of capital low and increased the volume of mortgages. Government backing allowed the two to borrow money at lower rates than anyone else in the housing financing market.

via » The Coming Bailout of Fannie Mae and Freddie Mac – Big Government.

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Posted in: Economy