The US has taken over Freddie Mac and Fannie Mae, the two biggest privately owned mortgage lenders in their country. They fired and replaced the CEO's and board of directors. They will now conduct the day to day operations of the companies. They are taking money away from the investors by eliminating their dividends. Here is the source for all of the above factual claims: http://money.cnn.com/2008/09/07/news/companies/fannie_freddie/index.htm?eref=edition Besides these consequences, the takeover may have big costs for the US taxpayers as well. Treasury secretary Henry Paulson stated he was unsure how much it would be costing, but certainly did not deny the expenditures. The treasury department said they would possibly spend as much as 100 billion dollars over time. The following is the source for these claims: http://seattletimes.nwsource.com/html/businesstechnology/2008161349_apmortgagegiantscrisis.html I am posting this thread to inform people of what is going on as well as the consequences that it will have on its investors and the taxpayers, as well as to inquire on what the good side might be or to simply discuss if it's a good decision, or other concerns for why it might be bad. I would like to know what other people think about its effectiveness as well. Do you believe that this will help the economy and the housing market, or could it make things worse? I invite anyone from anywhere in the world to comment or dispute. The following is my opinion about the matter: I don't like it because it is a step towards communism. I feel the government's role is not to interfere in the affairs of private corporations so much, let alone take them over. And nationalizing any company in any industry may be a slippery slope. Today it's okay for them to take over private institutions, this might mean that they could do the same in the future for other companies as well, perhaps even outside the finance industry. This of course is speculation on my part. But I'm no fan of a move towards communism.