Freddie Mac + Fannie Mae = Screwed Investors

The US government has taken over Freddie and Fannie.

Investors will lose everything they put into it while they try to improve their balance sheet. The move was made to help make the banks (primarily overseas in countries like China) more solvent due to the declining value in the mortgages they back.

Millions of Americans are left hurting. Not only because their investments have turned into nothing, but also people may have these companies in their 401(k)s and not even realize it.

You can read more about it here: http://www.nytimes.com/2008/09/08/business/08fannie.html?ref=worldbusiness