Fannie Mae and Freddie Mac bailout

The Bush Administration has taken control of Fannie Mae and Freddie Mac in an effort to stabilize the housing market and U.S. economy.

What seemed unlikely has happened: On Sunday, the Bush Administration took control of mortgage heavyweights Fannie Mae and Freddie Mac in an effort to stabilize the housing market and U.S. economy.

Treasury Secretary Henry Paulson announced the bailout on Friday: "We have determined that it is necessary to take action. Our economy and our markets will not recover until the bulk of this housing correction is behind us. Fannie Mae and Freddie Mac are critical to turning the corner on housing."

President Bush says the government's takeover of the nation's two biggest mortgage finance companies was necessary to keep them from failing. The government's decison was all about maintaining the health of the American and global economy. Stock markets in Asia have risen sharply in response to the takeover.

"The Takeaway's" John Hockenberry talks to Stephen Labaton from "The New York Times."

Labaton says the news is good for mortgage holders, but not so good for tax payers.

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