Anyone seen the news today about the FED bailing out Fannie Mae & Freddie Mac?
by Mortgage Rates on Thursday, October 21st, 2010 | 1 Comment
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The only thing this will do is save the mortgage backed securities that they own. The Fed is offering more liquidity so tha they have the ability to continue insuring these securities. This way they will not default and we will not see what we saw at the end of last year when the market, etc went down the tubes with the subprime mess due to everyone defaulting on these mortgage backed securities. This is good for the economy and the housing industry even though some may argue that the Fed should not step in and should let the economy run itself and regulate itself.