Raise money on the government's credit rating, leverage them up big-time and have huge derivative positions to maximize "profits", and grant management a ton of options to enrich them beyond belief. Oh yes, buy off Congress to allow this to happen. Only in America.

Tom, Oklahoma,

By diluting existing shareholders with warrants in favor of the US taxpayer, treasury is practicing the BEST form of capitalism: he who has the gold, rules. In turn, FNM & FRE live to help the average homeowner by financing new deals thereby reducing inventory which over time stabilizes home prices

mirko, santa monica, USA

My mother's habit of stashing money under her pillow no longer seems like such a bad idea! It would seem that all these "brainy" PhD's on Wall St and in the Federal Reserve aren't really so smart after all. Wall St. understands one thing: how to fill their own pockets at the expense of the masses.

George, Vancouver, Canada

US election yr means Congress, Bush and Feds will do anything to prop economy (held together w/ smoke, mirrors). Directive is to keep the money pumping machine going (rates 2%) and spend in cash in droves to delay the inevitable budget deficit caused crash. No miracle growth cure. Airlines next.

Paul Fiore, Los Angeles, USA

Fannie & Freddie own or guarantee at least $5 trillion of mortgages. If the value of these loans lost 5%, that's $250 billion. Sure, many of these loans are at low loan-to-value, but with home values having dropped ~25% in two years, a 5% loss to the GSE's is very possible. $15 bil is peanuts

Olav, Minneapolis, USA

Howard Shapiro....said there was “no question” that the two firms were fundamentally sound.

I can handle it. Just a little more.... I'll give up tomorrow.

Austin Tassletine , South West , UK

Bad! real bad.

Shortest meaningful, Comment Ever, USA

By 1913 standards (Fed Created), your Dollar is only worth about 3 cents now anyway. And.....it costs 1.7 cents to make one penny by the U.S. Mint.

Joe, The Woodlands, USA

The USA is bankrupt and the only surprise is how much longer foreign investors are prepared to see their dollar held assets collapse.
The U.K used to be the global super power until its colonial commitments effectively bankrupted the nation.
The culture of instant gratification is over, it failed

James Currie, Marbella, Spain

Isn't it great how the Fed justs keeps giving away OUR money to bail out these failing businesses!!!!!!

Someone explain to me how two privately owned businesses who've just lost 90% of their market value in one year are "fundamentally sound"?

I'll bet that analyst makes a lot of money too!

carl caristo, Asheville,N.C., U.S. of A.

It is the case that the only safe place for ones savings is gold bars ,stamps or under the bed!

Brian Mc Caughey, Bury, Lancs

It seems we are all aware that we are being robbed by Governments and private banks. The question is, how do we stop them? Revoloution? How far can they push us?

steven pill, bedale, uk

I think the Fed has shown that it is not as 'financially independent' as we thought. Its monetary policy has been a scam waiting to be exposed. When u make money available at a pittence, your asking for trouble. However this rot began with Greenspan.

Ben Chuad, Southall, UK

The US financial woes started when the Federal Reserve, a privately owned company, was created, it's been in league with the European Mega Banks manipulating world finances ever since.

John W, Fort Worth, USA

this fannie&fred thing.Hank Paulson is like a plumber preparing the revive a dying dinasaur's heart with AAA batteries.
Godd luck.

keesiong song, petaling jaya, malaysia

Paulson is one of the problems, not the solution. His Goldman, Sachs outfit (for whom the US taxpayer is now paying the bill) is one of the prime instigators in what will, undoubtedly, become, the biggest financial meltdown ever seen in the western world . First sub-prime, then Alt-A and then......

Rob, Isle of Wight, UK

Fools! No help! Free Market Free Market Free Market! You are simply helping to end Americas reign as dominant world power. A hundred million paupers tommorow morning are better than statism. It simply assures a billion paupers a few years along the line.

Eric Skelton, Cardiff, Wales

You have to wonder at the rational behind the establishment of Freddie Mack and Fanny Mae in the first place - as it allowed these mortgages to be sold on cheaply as high grade debt which inevitably fuelled the housing bubble in America because it was so much cheaper to take out a mortgage.

David Nammory, Liverpool,

Less than 72 hours ago, Hank was telling us what fabulous shape that Freddie and Fannie are in (despite the fact that the jig is up, and the whole world now knows these heaps of rubbish are insolvent). But here we are with Hank coming to the rescue in uncle Benny's helicopter. Incredible.

scott, Washington, DC,

I've already started my own bank in the barn

Jessie, atlanta, usa

Agree with Mike from Los Angeles.
It is disgusting that the consumers are always on their own standing or falling on their own actions and abilities, yet the people that govern our lives and employment have their hands held all the time. Makes you wonder what it takes for a revolt / revolusion,

Joe, Geelong, VIC Australia

History will show that cutting rates from 5.25% to 2% in just 8 months was a huge mistake.Just look what has happened to the oil price since the FED starting cutting rates.At least the BOE only cut rates 3 times which was a huge mistake in itself.Now they're trapped between a rock and a hard place.

stephen hulton, eure, france

Eliminate the FED and these shoddy practices, NOW!

kate, richland, USA

The difficulties being experienced in the USA will result in a further reduction in mortgage availability in the UK.

Costas, Cyprus,

Reaching a point where there's no more temporary liquidity to sustain the illusion that these Zombie Banks are still alive. First, the sovereign funds were tricked by understated losses. Next the financial institutions dump major investments (Merrill's stake in Bloomberg) to buy a few months' time.

Peter, London,

Injecting only $15B will only slow down the inevitable... With the current data coming in on Alt-A loans as bad as it is, it is obvious that this is going to be a historic deflationary correction. The best thing the Treasury department can do is get out of the way.

Tim Jones, Atlanta, USA

Great comment by a Democratic Senator during the Paulson/Bernanke hearings last week. He said, "It appears we now have socialism for the wealthy and capitalism for the poor."

Mike, Los Angeles, ca., USA

With ever thing that is happening to banks, if i had money with Badford & Bingley or Aliance & Leicester , i would be taking my money out, as they are both in trouble. If the banks don't start to look after there savers, they will lose them as they put they money under the bed. Then you can keep it

oliver, colchester,

a dollar will be worth a penny...bettter save my pennies

robert, boston,

I have excessive credit card debt due to my trips to Vegas. Do I get a baliout? If not, why not -- am I the wrong sort of gambler?

ProfNickD, Phoenix, USA

Where's my bailout?

Shut the FED down.

John, San Francsico,