Recent headlines have focused on Fannie Mae and Freddie Mac, the agencies provide liquidity to the mortgage system. In light of the subprime debacle and housing crisis, some wonder if Fannie and Freddie can survive. The rumor mill suggested that they would fall apart, but some analysts say that the mortgage giants have resources in their war chests.
In addition to resources, Fannie and Freddie have Uncle Sam on their side. Nobody knows if the government will step in to save them, but most think that they're too big to fail - if they go down the economy will be destabilized even further. Fannie Mae and Freddie Mac are involved with about 50% of US mortgage loans.
As you might imagine, the financial press has covered the story in-depth. See below for more information.
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