"The government-chartered companies, which own or guarantee about half the $12 trillion of U.S. mortgages, can count on a federal lifeline, said Republican Senator John McCain, of Arizona, and Democratic Senator Charles Schumer, of New York." - Bloomberg Report

Fannie Mae & Freddie Mac- too big to fail?
http://www.cnbc.com/id/25638740

It looks very confirmed that FNM & FRE will get Government Bail Out. It is gonna be really ugly, if that happens. US Government already has too much spending & unstoppable rapidly growing money supply and now about 5 Trillion Dollar bail out. Fed is gonna print more money to do that. Federal Reserve has already printed about 4 trillion in last three years. Once all those money go into circulation, too many dollars will decrease the purchasing power big time & inflation will kick in at faster rate. Lehman Brother is on it's way to become another Bear Sterns. Very few signs from Fed to raise rates by end of year. May be bottom will come faster than expected.

Money Supply


What is this MZM, M1, M2, M3? http://en.wikipedia.org/wiki/Money_supply

Consumer Price Index- InflationCurrent Account Balance
Commercial Banks CreditIn conclusion,

• Bad news for US Dollar, US Tax Payers & Global Equity Market.
• Good news for EUR, AUD, GOLD, JPY, CHF, SILVER, OIL.

Data Source:
Federal Reserve Bank of St. Louis