The New York Times is reporting that the U.S. government is considering a bailout plan for government sponsored Fannie Mae and Freddie Mac as both finance companies continue to struggle with funding issues and shares drop to their lowest level since 1991. The plan to put both companies in receivership would leave shareholders with nothing and stick taxpayers with the cost of covering losses (that crushing sound you hear is your government piling on top of you). Fannie and Freddie currently hold about half the mortgages in the U.S.07/13/08 Update: Fed to extend credit to Fannie Mae & Freddie Mac.
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