Links:
Gov't May Soon Take Over Fannie, Freddie - Washington Times
Gov't Takes Control - Reuters
Washington's Fannie & Freddie Plan: Why Now? - Forbes
Game Plan: Time for a Rate Cut? - Cramer
Fannie Mae, Freddie Mac Are Taken Over by U.S. Treasury to Avoid Collapse - Bloomberg
S&P slashes Fannie, Freddie preferred stock to junk -Reuters
The Details & Comments - Calculated Risk
My take on why this is happening now and not months ago, the strength in the dollar makes it possible. This action will no doubt end the rally in the dollar and we'll just have to see how commodities react to this news next week. While the feds talk a strong dollar they secretly love a weak one because it makes American goods and services more competitive. So this inflationary action (a bailout) is likely to put pressure on the dollar. Take a look at the US Dollar index, talk about a bear market rally, wow:
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