Fannie Mae and Freddie Mac Bail out
Posted on September 17, 2008
The government has stepped to the plate and decided to bail out the two mortgage giants Fannie Mae and Freddie Mac. Both companies are important part of the American economy because of the dealings with the majority of home loans in the country.
Actually both these companies started out as government entities and soon again come under the control of the federal government. This leaves the companies with a couple trillion in debt. That is right Trillion! Also, their stock value is almost close to zero.
The economy is hurting and this just an example of how carrying to much debt can be a way to find yourself in trouble. If these large trillion dollar companies can find themselves bankrupt anyone can.
Related posts: