Alarm swelled on Friday that Fannie Mae and Freddie Mac might run short of capital, placing the fragile U.S. economy at even greater risk, as the Bush administration offered no hint of a government bailout of the largest U.S. providers of financing for mortgages.
Worries about Fannie and Freddie grew after The New York Times said the administration was considering a plan to put the companies into a conservatorship if their problems worsen, citing people briefed about the plan.
Putting Fannie and Freddie into conservatorship could wipe out shareholders, and obligate taxpayers to cover losses on home loans Fannie and Freddie own or guarantee.
Fast Money viewer Dominick S. from New York thinks it's time for the government to take more dramatic steps. He says, "they will collapse. Unless the government steps in now , and I mean now to change the "implied guarantee" to an "implicit full faith and credit guarantee."
And that leads to our Fast Money Reader Poll. Do you agree with Dominick? Should the government step in and guarantee any losses on Freddie and Fannie home loans?
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