the visible hand

it is the theory which decides what can be observed – einstein

Fannie and Freddie Stocks Plummet

Posted by ecoshift on July 10, 2008

Fannie and Freddie Stocks Plummet – NYTimes.com
July 10, 2008
By REUTERS

NEW YORK (Reuters) – A firestorm of anxiety over the ability of U.S. mortgage giants Fannie Mae and Freddie Mac to get the capital they need to survive sent their debt and stocks plummeting on Thursday.

Stoking concerns, former St. Louis Federal Reserve President William Poole said the two major U.S. mortgage finance companies were “insolvent” and may need a U.S. government bailout, according to Bloomberg News.

The outlook was so dire that Bush administration officials were meeting with regulators to discuss contingency plans should they be unable to raise funds and support the worst housing market since the Great Depression, according to a report in the Wall Street Journal.

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