In the United States last weekend at the Kansas City Federal Reserve Bank's annual meeting, "the two" (Fannie and premises of the United States) the hardship suffered a hot topic. Some economists said the drop in stock prices, "the two" difficult to attract strategic investors, the U.S. Treasury Department will have to "two-room" injection of funds, but to boost the U.S. economy for a limited effect.

Crisis triggered concern that

Due to persistent Puchu bad news, "the two" share prices fell 90 percent over the past year, coupled with concerns about the Trusteeship Council, the stock fell more days. Bloomberg News quoted bodies of the view that the rescue Fannie and premises of the United States might need at least 15 billion U.S. dollars of funds. Market, shares fell greatly undermined confidence in the market. Without government help, the two mortgage finance institutions Fannie Mae and premises of the United States and almost not possible to raise sufficient capital.

Israel's central bank governor Stanley Fischer said that the real estate market prices fell concerns continue to exist, concern remains focused on Fannie and premises of the United States and some banks. "Two-room" ever increasing losses this year, prompted the U.S. Treasury Department to consider providing their aid.

At present the United States is still the sharp drop in property prices, lead to more loss of the owners default and foreclosure of collateral, which in turn further reduce the property value. Rates fell to the holders of mortgage-related securities to support the impact on banks, and ultimately lead to curb credit and slow economic growth. If no alternative, the U.S. government can only be hosting the final "two-bedroom."

Analysts pointed out that if the U.S. Treasury to "the two" large-scale capital injection may cause mortgage rates decline. However, "the two" occupy the U.S. mortgage market share of 42 percent, once the "tap" Open, will lead to huge government budget deficits.

In addition, the U.S. Department of the Treasury if the capital injection, may take the form issued preference shares. As a result of this stock dividends and liquidation of assets is the priority, and will bring about "two-room" equity dilution, will lead the two agencies damage the interests of ordinary shareholders, which also sparked concern.

Trying to ensure that" the two "no bankruptcy

Last month, the U.S. Congress passed the U.S. Treasury Department assistance Fannie and premises of the U.S. bill. Under the Act, the U.S. Treasury Department will be able to Fannie Mae and premises of the United States to provide adequate credit, when necessary, financed the purchase of its shares, while the Government will establish a new regulatory bodies to strengthen these two financial institutions supervision.

While U.S. Treasury Secretary Paulson in力推the rescue plan made it clear that "the plan is only back-up programme that will never use," will restore market confidence. The result is that the Government not to the "two-room" capital injection will boost the market. But now, the Government to ensure that "the two" will not bankrupt the determination of the U.S. government may make the final shots trust "two-bedroom."

Lewis Alexander, chief economist at Citibank said that a number of intervention measures may be difficult to avoid, but for the Government, there is no simple option available. "However, one thing is certain, and that is to support the mortgage market."

Former U.S. Federal Reserve Chairman Alan Greenspan said earlier that "two-room" there is a fundamental issue of the financial institutions and the Government's solution is the "two-room" implementation of the reorganization, the two companies for the five groups to 10 independent privately held company and then proceed to the auction.