The US Congress created mortgage sponsor Fannie Mae in 1938 as part of President Roosevelt’s plan to revive the economy during the Depression; Freddie Mac was launched in 1970. The agencies are now the chief providers of mortgage financing; they own or guarantee about 80% of US mortgages originated this year. In Canada, they are the equivalent of our own Canada Mortgage and Housing Corporation.

Yesterday US Treasury and Federal Reserve officials announced plans to back the failing companies, and it is estimated that the bailout could cost taxpayers $25 billion:

"Speaking Tuesday in New York, Treasury Secretary Henry Paulson said the stability of Fannie and Freddie are the key to easing uncertainty about U.S. financial markets.

Members of Congress are currently working out a deal that would allow Uncle Sam to help Fannie Mae and Freddie Mac in an emergency. The deal would revise supervision of the agencies and allow the government to insure up to $300 billion in refinanced mortgages.

Congress plans to include $4 billion in the bill to help local governments buy and rehabilitate foreclosed houses. President Bush opposes this provision but backs other sections of the bill; it’s not clear whether he’ll sign it into law or veto it as threatened.

The Congressional Budget Office, a nonpartisan agency, says a temporary measure to back Fannie and Freddie could cost taxpayers as much as $25 billion."

This legislation is a war-time-like-measure showing desperation on the part of the US government in trying to shorten the housing depression and the worst economic recession in decades.

But many American tax payers are finally outraged and taking to the streets in protest of the intervention proposal.

Watch this clip for a good overview: **Red Alert**Rape by Congress Imminent.

The problem with seeing the truth is that it then begs the question: what changes are we all prepared to make to our spend-thrift habits and credit-pushing institutions to clean up this mess and get back on track?