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Morning Mortgage Meltdown: Bush Bails Fannie and Freddie

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Fannie Mae and Freddie Mac can rest a little easier today as President Bush as signed off on new housing legislation to protect the ridiculously named mortgage giants. The bad news? Well, some of the bad news: The bill raises the national debt limit to $10.6 trillion to accommodate the potential expenditure of millions of dollars in the event that Fannie and Freddie need a Federal bailout. The good news (besides safeguarding half of the country's mortgages): the law will help 400,000 homeowners by replacing their mortgages with more affordable, government-insured loans. The new legislation has been called "the most aggressive intervention by the government into the housing market in more than a generation." Some have even compared it to the New Deal, but likening Bush to Roosevelt seems a little absolutely insane far-fetched at this point, no?
· Bush Signs Sweeping Housing Bill [New York Times]