Two bits of news about Fannie Mae and Freddie MAC that bear notice:

First, it appears that the credit default swaps, think insurance with a bunch of corruption thrown in, on the GSEs could face a 5 year delay in pay-outs in the event of a government bailout, and S&P lowered the rating on subordinated debt as a result to BBB+ from A-.

Also it appears that the foreign investors who largely bankrolled the GSE’s business during the housing boom are retrenching, meaning that it will be harder for them to find additional financing.