Someone asked...Tell us what Freddie Mac and Fannie May are... I read it from Gary's
newsletter, but I sometimes need an interpreter for his stuff...


They are a quasi govt/private company, more than the who, it is the what they do thats of interest, they handle home mortgages. Here is a paragraph From Gary about them today.

....I think the housing sector is going to fall next year. The only thing keeping it going today is the assumption of government money behind Freddie Mac and Fannie Mae. They are making 80% of all the mortgage loans in the country. If they go under, mortgage interest rates will jump dramatically, which means that very few people will be able to qualify for loans at the entry level. This will push down prices throughout the entire housing industry. Yet housing is a disaster zone already, not just in the United States, but also in Europe. This is a worldwide phenomenon. It is even hitting Shanghai. The bubble has popped. A few brave souls -- or shills -- say housing is near the bottom. This was before Paulson's emergency announcement on Sunday...

You can wikiepedia them for more nuts and bolts about them.

Last year as things got bad on the housing front congress told these two companies to com'on step up and fill the gap. Commentators like Gary at the time said they are telling them to cut their own throats. No one wants to buy this stuff so you guys should.

Gary had a great overview yesterday on his member side. Im thinking it will show up at Lew Rockwells tomorrow and will link to it if it does. Something is happening in front of us that the likes hasnt been seen since the days of the great depression. The Republic is finaly realizing it if you saw the paper today.