Fannie and Freddie?
I do not understand the impact that the problems of Fannie and Freddie have and will have on our economy. Is executions mass or what? The media makes it sound like a terrible crisis. Can someone explain this to me?
If Fannie and Freddie go under (which they will not) be a disaster for the economy. This gave much money to help people have a house, and in many cases involved money that was not hers. It was leveraged 30:1 (for every $ 1.00 of their own, they borrowed about $ 30.00 for other people's money). With this kind of influence, if the value of its assets are just a little boy who removes all their investments, and that's exactly what happened. It is a kind of terrible crisis, or at least it would be if the government allows them to fail, but fortunately, the brilliant minds (yeah right …) in charge of this country have discovered that we can not let Fannie and Freddie go bankrupt. I am not sure if it was a good explanation for everybody, but a beginning!
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