2008-10-11bloomberg.com

This makes a lot of sense:

The Federal Housing Finance Agency, which placed the two companies in conservatorship on Sept. 7, directed them last month to start increasing their purchases of loans and mortgage-backed securities as the Treasury seeks to absorb underperforming and illiquid assets from financial companies.

It's really not all that surprising. After all, the U.S. government is the ultimate off-balance sheet place to stick toxic assets and now with Freddie and Fannie in "conservatorship", they can start sucking up more troubled assets sight unseen!

So in a sense, Fannie and Freddie are now the bailout that keeps on giving ... er taking ... whatever.


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