Freddie and Fannie being taken over

In yet another sign that our economy is fubar, (for those of you who know what that means) we have the 2 biggest housing lenders going under protection. They hold the notes on some 90% of home mortgages in this country. Imagine how many MORE people than expected can be foreclosed on. So far the estimates are 9 million by 2009, but if 90% of homes are foreclosed on, well......there will be a war, because people will just stay in their homes. No point in having 90% of the homes in America sit vacant.
U.S. to take control of mortgage giants The U.S. government will purchase preferred shares of Freddie Mac and Fannie Mae in an effort to boost confidence in the mortgage finance giants, U.S. officials announced today. Treasury Secretary Henry Paulson says the actions were being taken because "Fannie Mae and Freddie Mac are so large and so interwoven in our financial system that a failure of either of them would cause great turmoil in our financial markets here at home and around the globe."