Fannie Mae (FNM) and Freddie Mac (FRE) – Crisis Averted?
The past week has been simply brimming with new developments in the national mortgage crisis. On Sunday, industry giants Fannie Mae and Freddie Mac received clearance from the government to tap into the Federal Reserve's discount lending window, a necessary measure for which few had ever anticipated the need. However, with the bottom having fallen out of the housing market, both government-sponsored entities were found to require immediate aid. Over the course of the week the action seemed, at least temporarily, to quell the potential for total meltdown. While many are opposed to government bailouts, the ramifications of allowing the…