US government bails out Fannie Mae and Freddie Mac

This video is called Freddie Mac and Fannie Mae “insolvent”.

By Nick Beams:

US government bails out mortgage giants

14 July 2008

The crisis in the US financial system has taken a major turn for the worse with the announcement on Sunday that the US Treasury and the Federal Reserve Board are to take emergency action to prop up mortgage giants Fannie Mae and Freddie Mac.

Under the rescue plan, Congress will be asked to pass legislation to increase the line of credit to Fannie and Freddie—the amount and terms to be decided later—as well as providing the authority for the government to purchase equity if needed. In addition, the Federal Reserve Board has granted the Federal Reserve Bank of New York authority to lend directly to the two companies “should such lending prove necessary.”

See also here.

US bailout of mortgage giants: The politics of plutocracy: here.

Bush on the financial crisis: “Wall Street got drunk”: here.

Banks sharply increased fees as US households fell deeper into debt: here.