Home Front

A blog about the economy and the Sacramento-area real estate market.

There have to be consequences rippling all over creation if the federal takeover of Freddie Mac and Fannie Mae is the biggest federal intervention in the financial system in history.

Here's one. The Washington Post in this report says that many banks invested heavily in Fannie-Freddie stock because they were told it was safe. Now the takeover is wiping out nearly all their shareholder volume, in many cases, the foundation of their reserves.

 

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November 2008

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