Saturday, July 12, 2008

The 5 trillion dollar question

What would an unexpected US$5 trillion bail out do the US deficit? After losing $80 billion dollars in the last nine months, Freddie and Fannie are at risk of under-capitalisation. Covering almost half of the US mortgage market, this analyst said that if Freddie and Fannie go under, "it would go 1929. We would go from a recession into a depression."