The US government is taking control of the mortgage giants Fannie Mae and Freddie Mac and the $5.5 trl of home loans they control. Washington's dramatic rescue package includes the injection of $200 bn of public money into Fannie Mae and Freddie Mac - the linchpins of the US home loan system - to prevent a total meltdown of the housing market. The sector has been reeling since the onset of the subprime mortgage crisis.
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