Fannie Mae and Freddie Mac

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Freddie Mac and Fannie Mae are owned by private shareholders.  But because they originally were chartered by Congress and get favorable rates, investors believe that both companies are implicitly backed by the federal government.  They now own almost fifty percent of all mortgages in the United States, amounting to $5 trillion. Last week, their stocks lost almost half their value.

Credits

Guests:
James Hagerty - Wall Street Journal - @JamesRHagerty, Peter Cohan - President, Peter S. Cohan and Associates, Michael Mandel - Editor in Chief, Visible Economy

Host:
Warren Olney

Producers:
Sonya Geis, Karen Radziner