The Morning Edge – September 8, 2008

The U.S. Treasury Department finally stepped up to the plate over the weekend and seized control of Fannie Mae and Freddie Mac. The nation’s largest mortgage lenders have had implicit federal backing as government sponsored enterprises (GSEs). Mounting losses from the sub-prime mess have artificially help up mortgage rates despite multiple Fed rate cuts, making home-ownership more expensive and exasperating the housing crisis.