Stock markets soar

09-10-2008 10:00

Stock markets worldwide soar after the US government has announced to take over control at mortgage giants Fannie Mae and Freddie Mac. Together both companies are good for more than 50% of all US mortgages.

Crucial intervention

Government intervention was crucial. Without intervention Mae and Mac would have been lost for sure. Both companies were strongly hit by the credit crisis and both lost billions of Dollars.

Distress call

Last week Pimco's Bill Gross pleaded for more investments in the financial sector. According to Gross, these investments are crucial. Without these investments, the financial sector might not be able to survive the credit crisis.