Government takes control of Freddie Mac and Fannie Mae

With the financial market in trouble the government decided they needed to step in to help out. They concluded that a failure in these two markets would greatly affect the American population in their ability to take out home loans, auto loans, and other consumer credit. Not only would a failure in these two markets hurt American but also all over the world since they are such a vital part of the United States financial market, which is supposed to be fairly secure. The two loan giants "own or guarantee about $5 trillion in home loans, about half the nation's total." This was announced Sunday by the Bush administration and they also noted that all of the executives and board or directors have been replaced for both Freddie Mac and Fannie Mae