Are Fannie Mae and Freddie Mac on the verge of insolvency???

S&P said a scenario whereby Fannie & Freddie are insolvent is unlikely, but that the mere possibility of failure at either is a greater threat to the economy than the actual collapse of any investment bank. The report went so far as to say that a govt bailout of either could force the agency to lower its rating on the creditworthiness of U.S. (!!)

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