Question by ztim21: What ramifications would the US face if Freddie and Fannie were not saved?
How does the facts that these companies buy/sell mortgages through securitization make mortgages more affordable for ordinary people?

The answer is liquidity, but I dont understand how that makes mortgages inexpensive.

Pre-bailout, what is the ownership interested of the US gov’t as Freddie and Fannie are GSEs?

Thanks for all your help in figuring this one out!

Best answer:

Answer by texanskid
I wish they didnt get saved. I have stock in Fannie May and got whiped out today. Granted I didnt put that much in that I couldnt afford to lose which a lot of people didnt do.

Fannie and Freddie own half of the entire country’s loan debt so without these two companies the credit crisis would get even worse and the banks wouldnt get there money either. Without them being saved the economy would have been destroyed and the banks would go out of business as well.

Know better? Leave your own answer in the comments!