Government to give Fannie May and Freddie Mac unlimited funds

Mortgage giants Fannie may and Freddie mac have just received an ATM card from the government with unlimited funds. The Treasury Department removed the $400 billion financial cap on the money it will provide to keep the companies afloat on Thursday. By making the change before year-end, Treasury sidestepped the need for an OK from a bailout-weary Congress. While most analysts say the companies are unlikely to use the full $400 billion, Treasury officials said they decided to lift the caps to eliminate any uncertainty among investors about the government's commitments. But the timing of the announcement on a traditionally slow news day raised eyebrows.
The biggest headwind facing the housing recovery has been the rise in foreclosures as unemployment remains high. The two companies, facing mounting losses from mortgage defaults, were taken over by the government in September 2008 under the authority of a law Congress passed in the summer of 2008. Taxpayers have already shelled out $111 billion to the two companies.

More Stories on the real news:

Tap water dangerous

codex alimentarious

vitamin d