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The Federal Bailout of Fannie Mae and Freddie Mac

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Treasury Secretary Henry Paulson said the federal takeover of Fannie Mae And Freddie Mac was necessary because their failure would "affect the ability of Americans to get home loans and other consumer credit and business finance. And a failure would be harmful to economic growth and job creation."  Was the Paulson plan necessary?  Will it work? And at what cost? Also, Governor Sarah Palin could not be more popular in Alaska, but how will she play in the lower 48?


Treasury Secretary Paulson speaks at a news conference announcing a federal takeover of Fannie Mae and Freddie Mac as Federal Housing Finance Agency Director James B. Lockhart looks on September 7, 2008 in Washington, DC. Photo: Brendan Hoffman/Getty Images

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