The New York Times is reporting that Fannie Mae and Freddie Mac will be taken over by the U.S. government. This is huge news because now the government is responsible for billions of dollars of bad mortgage debt. There is only two ways to pay of that debt: raise taxes or print more money. Neither of these options is good for you.
For further reading check out Barry Ritholtz’s analysis over at The Big Picture. Now is the time to start paying very close attention to what the government does.
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