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Seize Them!

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If you just crawled out from under your rock, the big news over the weekend was the Federal take over of Fannie Mae and Freddie Mac. Via the Wall Street Journal: "...the U.S. mortgage crisis entered a new and uncharted phase, potentially saddling American taxpayers with billions of dollars in losses from home loans made by the private sector. Bush administration officials argued that the cost of doing nothing would be far greater because of the toll on the economy of falling home prices and defaults in the $11 trillion U.S. mortgage market." Financial markets are up on the news, but is this a necessary step for a recovering housing market, as some claim, or a sign that things are getting worse. [WSJ/New York Times/LA Times]