...Steve Liesman, CNBC said, "Investor confidence in these companies have gotten so low that they are not going to give any more money to these companies. It's only the government that can now shore them up." The fear as the housing market continue to falter Fannie and Freddie would simply run out of money, effectively shutting down US mortgage market.
Raphael Bostic, University of Southern California said, "It will be fairly catastrophic and would be a devastating blow to the housing market and that negative impact will affect the United States." The governments move should restore confidence to both the foreign investors and to Wall Street and should make mortgages cheaper and more available here on main street. But experts say it is unlikely to keep home prices from falling further in the short term...
September 9, 2008