I know it would have far-reaching effects.
2007-01-17 13:32:27 · 3 answers · asked by Atlas 6 in Social Science ➔ Economics
Given the recent news on the CNN web site( see source below ) about increased home foreclosures your concern about Fannie Mae and Freddie Mac becoming insolvent definitely has merit.
Even though the US government officially says that these companies are independent of the government and their survival is not their responsibility, my personal belief is that due to the shear size of these companies and the number of tax payers that rely on them the US government would have no choice but to intervene and bale them out.
2007-01-17 14:10:42 · answer #1 · answered by Peter M 2 · 1⤊ 0⤋
They're federally sponsored, which means that collapse is almost impossible. They're backed by US Gov't securities, which are among the most stable in the world. Basically, FMae and FMac can only collapse if the US economy collapses.
(That would probably be bad.)
2007-01-17 23:27:23 · answer #2 · answered by jueyanz 3 · 0⤊ 0⤋
Oh, man... There'd be people in the streets, and lots of cheap housing.
2007-01-17 21:51:35 · answer #3 · answered by Anonymous · 0⤊ 0⤋