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Text size [+][-]  Saturday November 21 2009GLOBAL EDITION

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11 Jul 2008 17:22

Sawbones

By Dwight Cass

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The stocks of Fannie Mae and Freddie Mac fell by 50% and 40%, respectively, on July 11 before recovering somewhat.

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If US policy wonks handle the crisis poorly, the mortgage giants’ woes could spread throughout the economy with dire consequences for banks, consumers and the government itself. Decisive action is called for, but the pain should be spread gradually.

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