With shares of Fannie Mae and Freddie Mac - two pillars of the US housing market - continuing to plummet yesterday investors and federal officials contemplated the possibility that the giants of the mortgage business could require a federal bailout.
OMG this is pretty serious stuff. These 2 companies are key part of the infrastructure that holds together the US economy (together they underwrite nearly 50% of US mortgages). Whilst they wont (cant) be allowed to fail its a huge concern that we are even close to this situation.
The conclusion that we draw from this is that the economic situation is far far worse that we are being told.
Hold on to your hats and tighten you belts