the US government have made what could prove to be a historically
significant move by taking \"Freddie Mac and Fannie Mae\" under their wing.
With a massive 9% of all US homeowners reportedly behind in their
mortgage payments, the threat of these two mortgage giants, Freddie Mac
and Fannie Mae, actually going bankrupt and effectively bringing the
whole market to a crashing halt has prompted the move.
It is hard to underestimate the significance of such a move, which has
sent a wave of re-assurance throughout world markets and seen shares
rally, especially in banking stocks.
Graham Neale of Killick & Co. says: “The markets are certainly
going to rally today because investors are going to say ‘Maybe we can
see light at the end of the tunnel in terms of the credit crunch'”.
And Cobalt’s very own city expert Rob Gill says: “A year and one
month after European Central Bank action called the start of the credit crunch, this US
Treasury intervention could be the moment that’s ultimately seen as its
It will be interesting to watch the next moves in this topsy-turvy
market and we are all holding our breath to see if this does truly
become the endgame everyone has been hoping for.