But Barney told us that this wasn't true.
2008 U.S.A. Freddie Mac and Fannie Mae Bailout
14th July 2008 : Freddie Mac and Fannie Mae who own or guarantee about $5.3 trillion worth of home loans about half of all US mortgages have seen a loss of confidence by the market due to the mortgage forclosure increase and the drop in property values in the United States. Both company Shares have been under increasing pressure and have lost as much as 80% of share value in just 12 months . The Fed has given the green light for the Federal Reserve Bank of New York authority to lend any money needed to allow them to continue providing mortgages at 2.25% and will expand its current line of credit to the two companies and buy shares of the companies if needed to prop up share price in these troubled times. Congress is also to approve a package next week which includes a foreclosure rescue to help strapped homeowners get new, more affordable government-backed mortgages through the Federal Housing Administration.
Typical government program. When it's obvious that it's a failure, don't fix it, just prop it up with more money. Our money.
