by auronrenouille, Fri Sep 05, 2008 at 08:12:23 PM EDT
The New York Times is presently reporting that Fannie Mae and Freddie Mac are going to be nationalized. The mortgage giants purchase home mortgages roughly 50% of all home mortgages, and 80% of all new mortgages have been purchased by them due to the fact that the truly "private" mortgage companies are running for the hills in the midst of this true crisis.
Franklin Delano Roosevelt created these "companies" in 1938, but as federal agencies, as part of a way to spur economic development; the companies were wildly successful and contributed to the homeownership boom of the 1950s. LBJ privatized them in 1968.
However, now the New York TImes is reporting that they will be nationalized again, although they politely refer to the plans as a "rescue." However, the federal government will "assume control" of the pair. I think we can safely call that what it is - nationalization.