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Fed steps in and takes over Freddie Mac, Fannie Mae

September 7, 2008

...OLICK: The fear, as the housing market continued to falter, Fannie and Freddie would simply run out of money, effectively shutting down the bulk of the US mortgage market.

Professor RAPHAEL BOSTIC (University of Southern California): It would be fairly catastrophic. It would be a devastating blow to the housing market, and that negative impact would be felt broadly in the United States...