Bail-out fears rattle US shares

[babsbunny]

http://news.bbc.co.uk/2/hi/business/7568978.stm

Shares in US mortgage finance giants Freddie Mac and Fannie Mae have plunged again on fears that the government will be forced to bail out the pair.

The slide reignited concerns about the health of the financial sector and sent the US stock market sharply lower.

A report by US financial weekly Barron's suggested that the chances of a government rescue were increasing.

However, the Treasury said that it had no plans bail out the two firms, which underpin the US mortgage market.

The Treasury gained the authority to bail out the Freddie Mac and Fannie Mae, including buying shares in the two companies if needed, in a rescue plan approved at the end of July.


The degree and depth of what's happening in the financial industry is beyond anything we've seen in decades
John Merrill, Tanglewood Wealth Management

Citing an unidentified source, Barron's said US officials anticipated that the two firms would not be able to raise the money they needed to improve their financial footing.

[onethatcares]

1. just more of the same

privatized profits, socialized losses. I guess no one will ever be able to get a mortgage for a home now, those damn sneaky people talked the lenders into granting no document loans and then put the banks into a world of hurt. How could they?:sarcasm: