Fannie and Freddie, damned by a Faustian bargain
The rescue of Fannie Mae and Freddie Mac announced by Henry Paulson, US Treasury secretary, on Monday was the inevitable consequence of the "marketisation" of banking that has transformed central banks from lenders of last resort to buyers of last resort. These government-sponsored agencies own or guarantee $5,000bn of mortgages, equal to half of US government debt. Full Story »
Posted by Derek Hawkins
