What is being said about Fannie Mae and Freddie Mac's bailout?

Sphere: Related Content “The most astonishing thing about Treasury Secretary Henry Paulson's plan for Fannie Mae and Freddie Mac is that he intends to use taxpayer funds to resuscitate the companies and return them to profitability.” – The Wall Street Journal

This article notes very important information on Fannie Mae and Freddie Mac and their position as government-sponsored enterprises as well as what it means for the American homebuyers.

“Rather than marking the turning point that assures an economic recovery, the support that had to be provided to US mortgage giants Fannie Mae and Freddie Mac last weekend simply underlines the severity of the ongoing credit crisis.” – The Irish Times

The bailout saves the lives of the mortgage giants and the housing market outlook is left for the next president to handle. How does the future of the U.S. economy look from this point?

“Seeking to head off any unloading of Fannie Mae and Freddie Mac bonds by Japanese investors, the U.S. Treasury Department is taking the unusual step of directly contacting Japanese financial institutions about the plan to rescue the mortgage giants, according to a published report.” - MarketWatch

Example of how U.S. handles a situation overseas regarding the mortgage giants’ bailout.

“"The speculation, cronyism and corruption that pervaded the operations of Fannie Mae and Freddie Mac are emblematic of the parasitism and criminality of America's ruling financial elite as a whole," the article's author, Bill Van Auken, asserts. The US financial elite has certainly not come out of this episode well, but the end of capitalism?” – The Australian

The corruption that takes place in the financial structure of Fannie Mae and Freddie Mac are noted along with the prime motivation of the bailout. Chinese economist Yu Yongding states "if the US Government allows Fannie and Freddie to fail and international investors are not compensated adequately, the consequences will be catastrophic. If it is not the end of the world, it is the end of the current international financial system."