Report Highlights Fannie, Freddie Risks - Forbes.com: "WASHINGTON - A deep recession could force mortgage-finance titans Fannie Mae and Freddie Mac to require a federal bailout large enough to hurt the U.S. government's top-grade credit rating, Standard & Poor's warned Monday.
A lower credit rating would mean higher borrowing costs for the U.S. government and could lead to a flight from Treasury securities, which investors - including foreign governments - consider to be virtually risk-free"
What is a "fiat currency"? Wiki: "Fiat money is a subset of general credit money, but a special one in which a government, often through a central bank or reserve bank, has taken the responsibility (monetary authority) of being the major creditor backing the currency." the US dollar has acted as the World's fiat currency since we went off the gold standard.
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