Fannie and Freddie provide back about $5 trillion of US mortgages. This is significant liquidity to about 80% of the US mortgage market. The US Government (Feds) took control of these two companies. The implosion that most of us have been betting on is no more.
What does this mean for us? Liquidity in housing market will improve and the fear mongering in the press will likely turn bullish. This should also help Canadians as the stability in US means increased business for Canadians.
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