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>Mortgage News Tops Them All

>Political Disconnect chose to lead today’s stories with the blockbuster one on Fannie Mae and Freddie Mac getting gobbled up by the Feds.

Apparently, the best journalistic minds in America agreed with me. Slate highlights all the big papers and they’re right in line with my blog. “The New York Times, Washington Post, and Los Angeles Times lead with the news the papers have been previewing all weekend as the U.S. government officially took control of mortgage giants Fannie Mae and Freddie Mac yesterday.”

We asked in the blog a lot of questions. But one that jumps out and doesn’t need explanation is this: The government now has control over the companies that fund around two-thirds of all new home mortgages. Or, as the LAT succinctly summarizes: “Washington’s move means the federal government will directly back the great majority of the nation’s home mortgages.”

And if the magnitude of that fact is still not clear, the papers all make sure to emphasize that this is A Big Deal. The NYT calls it “a seismic event” and the Wall Street Journal characterizes it as the “most dramatic market intervention in years.”

Maybe I should have bought some of that $1.00 stock.