An Interesting Economics Lesson

An interesting economics lesson....how we're all linked, whether we like it or not........

U.S.-China Cash Flow Depends On Fannie, Freddie

by Adam Davidson

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Bob Sacha/NPR

Workers stack used electronics, many of them made in China, at a recycling drive in Brooklyn, New York.

 

 

Morning Edition, September 8, 2008 · With the U.S. government announcing on Sunday that it would take over Fannie Mae and Freddie Mac, public attention shifted to questions close to home. How would the bailout affect average taxpayers and home buyers? What would the final cost be?

Those are big concerns, but the domestic repercussions may be eclipsed by those overseas. That's because Fannie Mae and Freddie Mac play central — if quiet — roles in maintaining the U.S. position in the global economy. The system is at once incredibly complicated and surprisingly simple.  MORE....