Fannie Mae and Freddie Mac, two of the nation’s largest companies that back mortgages, were taken over by the Fed as of Sunday 9/7/08. They provide funding for nearly three quarters of all new-home mortgages according to the Wall Street Journal . The government will provide nearly $200 billion dollars of capital to keep the two mortgage companies afloat.
What does this mean for your money?
Your dollar is going down in value…again. The more the government prints, the less yours is worth as they continue to add more supply to the market. Inflation will rise, and the those who are saving in low-yielding investments are having your wealth taken away. I hope the bailouts stop soon, we can’t afford this debt! For more on the story, see the Wall Street Journal article U.S. Seizes Morgage Giants. .
