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Feds bailout Freddie and Fannie Mac
Original post made
by Left of Boom, Another Palo Alto neighborhood,
on Sep 7, 2008
The Federal government officially took over Freddie and Fannie Mac, two companies which guarantee almost half of the $12 trillion in outstanding mortgage debt. Placing these two companies into conservatorship is potentially the largest bailout in U.S. history. Combined they have $1.6 trillion in debt. This bailout dwarfs the earlier bailout of the savings and loan industry after deregulation.