Hank Paulson's announced some dramatic measures to prevent a Fannie/Freddie collapse where, among other things, he's going to ask congress to approve an increase in the debt ceiling so that the government can buy up a lot of their stock. Basically, it seems like a quasi-nationalization to me though I'll be interested to see what more serious econ types think in the morning.

Meanwhile -- the shocking true tale of how these companies managed to evade oversight is worth a read. Chuck Schumer done bad.

We want to hear what you think about this article. Submit a letter to the editor or write to letters@theatlantic.com.