Rescuing Fannie, Freddie as US Economy Faces 'Numerous Difficulties'

Rescuing Fannie, Freddie as US Economy Faces 'Numerous Difficulties'
Fed Chairman Ben Bernanke gave an economic report to Congress. And President Bush urged approval of a plan to save the country's two biggest mortgage finance companies. Transcript of radio broadcast:
18 July 2008

This is IN THE NEWS in VOA Special English.

This was not a good week for American economic news.


Ben Bernanke gave his midyear report to Congress. The central bank chairman said "the economy continues to face numerous difficulties." These include ongoing pressures in financial markets, falling house prices and a softening labor market. They also include rising prices of oil and food.
Ben Bernanke told lawmakers that inflation is too high. He said a top priority of the Federal Reserve is to bring it under control. He says that whether the economy is technically in a recession or not, families clearly are facing hardship.

The Commerce Department said Americans spent less on cars, furniture and restaurant meals last month as fuel prices rose.

In the housing market, some experts say the worst may not be over yet. Last Sunday, the government announced a rescue plan for America's two biggest mortgage finance companies, Fannie Mae and Freddie Mac.

The Treasury and the Federal Reserve said the government is prepared, if needed, to lend them money and buy some of their stock. The plan requires congressional approval.

Fannie Mae is the Federal National Mortgage Corporation. Freddie Mac is the Federal Home Loan Mortgage Corporation. They own or guarantee more than five trillion dollars of mortgages, almost half of all housing debt in the country.

Congress established them but they are owned by shareholders and publicly traded. Fannie Mae was created in nineteen thirty-eight as a result of the Great Depression. Freddie Mac was created in nineteen seventy.

Fannie and Freddie help lower borrowing costs for millions of homebuyers. They are called government-sponsored enterprises. They are not officially guaranteed by the government. But financial markets have always trusted that the government would never let them fail.

Now, after billions in losses, President Bush is urging Congress to act quickly on the legislation. Critics of the rescue plan see a huge risk for taxpayers.

Adding to investor concerns this week was one of the biggest bank failures in American history. California-based IndyMac was a major home lender. The government seized the bank last Friday after people started taking their money out.

IndyMac is among more than twenty banks under criminal investigation for possible wrongdoing in the mortgage lending industry.

At the White House, President Bush told a news conference on Tuesday that the banking system "basically is sound." He pointed out that deposits are protected by the government up to one hundred thousand dollars.

He also noted that the economy has continued growing, though slower than he would have liked. "We're going through a tough time," he said, adding, "I believe we will come through this challenge stronger than ever before."

And that's IN THE NEWS in VOA Special English, written by Brianna Blake. I’m Steve Ember.

----------------------------Google Translate

拯救房利美，弗雷迪，作为美国经济所面临的'重重困难'
美联储主席贝南克发表了经济向国会报告。与美国总统布什呼吁通过一项计划，以挽救该国的两个最大的抵押融资公司。全文电台广播：
2008年7月18日

这是在新闻中在美国之音特别英语。

这是不是一个好的周为美国经济新闻。


贝南克发表了2005年中期向国会报告。中央银行主席说， “经济继续面临着许多困难” 。这些措施包括正在进行的压力，金融市场，房价下降和软化的劳动力市场。它们还包括价格上涨的石油和食品。
伯南克告诉国会议员说，通货膨胀是太高。他说，最优先的美国联邦储备委员会是把受到控制。他说，经济是否在技术上是在一个经济衰退或没有，显然是家庭所面临的困难。

美国商业部说，美国人花少对汽车，家具和餐厅吃饭上个月作为燃料的价格上涨。

在房屋市场，一些专家指出，最坏的可能不是还没完。上周日，政府宣布了一项救援计划，为美国的两个最大的抵押贷款金融公司， Fannie Mae的和Freddie Mac 。

库务署及美国联邦储备委员会说，政府准备，如果需要，给予他们金钱，购买他们的一些股票。该计划要求国会批准。

Fannie Mae是联邦国民按揭证券公司。 Freddie Mac的是联邦居所贷款，按揭证券公司。他们自己或保证五年多万亿美元的按揭贷款，几乎一半的房屋所有债务在该国。

国会设立的，但他们所拥有的股东和公开交易。 Fannie Mae的是创造了在1938年，由于经济大萧条。 Freddie Mac的是创造了在1970年。

房利美和Freddie有助降低借贷成本以百万计的置业人士。他们是所谓的政府赞助的企业。他们没有正式由政府保证。但金融市场一直相信，政府将永远让他们失败。

现在，经过数十亿美元的损失，美国总统布什敦促国会迅速采取行动，对有关法例。批评者的拯救计划看到一个巨大的风险为纳税人。

加入到投资者的关注，这周是其中最大的银行倒闭，在美国历史上。总部设在加州的indymac是一个重大的首页放款。政府检获该银行上周五后，人们开始考虑他们的钱。

indymac是数一数二的二十多个银行根据刑事调查可能的不法行为，在按揭贷款业。

在白宫，布什总统的新闻发布会上说周二认为，银行体系“基本上是健全的” 。他指出，存款受到保障，由政府到10.0万美元。

他还指出，经济持续增长，虽然慢，他会喜欢。 “我们正在经历一个艰难的时间， ”他补充说， “我相信我们会来，通过这一挑战更强的比以往任何时候都” 。

这是在新闻中在美国之音特别英语，写的brianna布雷克。我史蒂夫ember 。