Foreign Funders Fret

nytimes.com — For more than a decade, mortgage giants Fannie Mae and Freddie Mac, have attracted overseas investors with a simple pitch: the securities they issue are just as good as the U.S. government"s, and they usually pay better. The marketing plan worked. One out of 10 American mortgages is, effectively, in the hands of institutions and governments outside the United States. Now that the two companies are at risk, how their rescue is handled will test the world's faith in American markets. Also at stake is Americans' future ability to gain access to credit. If foreign companies and governments abandon United States investments, home, auto and credit card loans will be much more difficult to come by.

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