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Text size [+][-]  Thursday March 18 2010GLOBAL EDITION

Considered view
10 Jul 2008 21:05

What $5 trillion?

Context News

The stocks of Fannie Mae and Freddie Mac hit new lows on July 10.

In a speech the same day, Republican presidential candidate John McCain said the government cannot allow the two government-sponsored entities to fail.

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Like the banks that ignored their contingent exposures to off-balance-sheet vehicles during the boom years and lost billions when things soured, the US chose to pretend it wouldn't ever have to back the mortgage giants. Now it faces an unpleasant reality.

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More stories by:  Dwight Cass






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