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Fannie, Freddie blind to the bubble

AP - Sat Sep 6, 8:06 PM ET

WASHINGTON - Mortgage giants Fannie Mae and Freddie Mac — despite their robust cadre of economists and mortgage experts — failed to heed warnings that the most dramatic housing bubble in U.S. history would burst.

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  1. Plywood on a boarded up hotel reads 'Stay Awake Ike' in Key West, Fla. as preparations are under away for Hurricane Ike Saturday, Sept. 6,  2008. There is an evacuation order in effect for non-residents, (AP Photo/Lynne Sladky)
    Could Florida Survive the Big One? Time.com - Sun Sep 7, 2:25 PM ET Sent 911 times

    The next big hurricane could leave the state not merely damaged but in financial ruin

  2. Treasury Secretary Henry Paulson, Jr. speaks during a news conference in Washington, Sunday, Sept. 7, 2008 on the bailout of mortgage giants Fannie Mae and Freddie Mac. (AP Photo/Susan Walsh)
    US Government takes over mortgage giants AP - Sun Sep 7, 4:12 PM ET Sent 371 times

    WASHINGTON - The Bush administration seized control Sunday of troubled mortgage giants Fannie Mae and Freddie Mac, aiming to stabilize the housing market turmoil that is threatening financial markets and the overall economy.

  3. Irving Shaffino, 15, poses with his mother Guadalupe Shaffino in Shallowater, Texas, July 16, 2008.  Irving developed liver disease and had a liver transplant in July of 2007.  (AP Photo/Zach Long)
    AP IMPACT: Liver disease plagues obese adolescents AP - Sun Sep 7, 2:56 PM ET Sent 306 times

    TRENTON, N.J. - In a new and disturbing twist on the obesity epidemic, some overweight teenagers have severe liver damage caused by too much body fat, and a handful have needed liver transplants.

  4. Democratic presidential candidate Sen. Barack Obama, D-Ill. speaks during a town hall meeting at the Wabash Valley Fairgrounds in Terre Haute, Ind., Saturday, Sept. 6, 2008. O  (AP Photo/Michael Conroy)
    Obama: Recession could delay rescinding tax cuts AP - Sun Sep 7, 2:53 PM ET Sent 262 times

    WASHINGTON - Democrat Barack Obama says he would delay rescinding President Bush's tax cuts on wealthy Americans if he becomes the next president and the economy is in a recession, suggesting such an increase would further hurt the economy.

  5. This Sepetmebr 7, 2008 NASA GOES satellite image shows Hurricane Ike seen at 1610 GMT. Barely a week after Hurricane Gustav devastated western Cuba, the island was battening down the hatches again Sunday for another killer storm, with more than half a million people evacuating Cuba's northeast coast, officials said.(AFP/HO NASA/Ho)
    Killer Ike blasts Bahamas, lashes Cuba AP - 51 minutes ago Sent 230 times

    CAMAGUEY, Cuba - Hurricane Ike roared across low-lying islands and bore down on Cuba, destroying homes, sweeping away boats and bringing more rain to waterlogged communities in Haiti, where it killed 48 more people.

  6. Republican presidential candidate, Sen., John McCain, R-Ariz., addresses supporters during a campaign rally Saturday night, Sept. 6, 2008 in Albuquerque, NM. (AP Photo/Stephan Savoia)
    McCain's history of hot temper raises concerns McClatchy Newspapers - Sun Sep 7, 6:00 AM ET Sent 219 times

    WASHINGTON — John McCain made a quick stop at the Capitol one day last spring to sit in on Senate negotiations on the big immigration bill, and John Cornyn was not pleased.

  7. Cruise lines change course to cut fuel AP - Sun Sep 7, 3:18 PM ET Sent 216 times

    PORTLAND, Maine - When the 1,020-foot Explorer of the Seas cruises through North Atlantic waters next year, it'll spend more time off the coast of New England and less time near Canadian shores, and it's not because of better vistas.

  8. Democratic presidential candidate Sen. Barack Obama, D-Ill., scratches his head as he speaks at Schott Glass in Duryea, Pa., Friday, Sept. 5, 2008. (AP Photo/Carolyn Kaster)
    Obama considered joining military, regrets abortion answer Politico - Sun Sep 7, 10:00 AM ET Sent 183 times

    Barack Obama says his answer about abortion at the Saddleback Church forum was “probably” too flip.

  9. Republican vice presidential candidate Alaska Governor Sarah Palin attends a campaign event in Colorado Springs. A Republican lawmaker is calling for the Democratic head of a probe into Palin to be replaced, accusing him of exploiting the investigation for political ends.(AFP/Robyn Beck)
    Palin agrees to interview Politico - Sun Sep 7, 3:41 PM ET Sent 169 times

    Under pressure for being shielded for questioning, Sarah Palin has a agreed to sit down with Charles Gibson of ABC’s “World News Tonight,” according to an ABC News official.

  10. In this Aug. 30, 2008 file photo, Democratic presidential candidate, Sen. Barack Obama, D-Ill., speaks to a crowd of supporters during a campaign stop in Dublin, Ohio.  As Obama paces the stage with a hand-held microphone it's easy to assume his 30-minute talk is more or less a free-associating string of talking points and applause lines. In fact it's a carefully organized four-part argument, which Obama delivers without notes and with remarkably few glitches or changes from week to week.  (AP Photo/Jay LaPrete, File)
    Obama's stump speech plays to fears, hopes AP - Sun Sep 7, 1:20 PM ET Sent 168 times

    DUBLIN, Ohio - As Barack Obama paces before 15,000 people with a hand-held microphone, it's easy to assume his 30-minute talk is more or less a free-associating string of talking points and applause lines.

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  1. Nurses evacuate residents from the Key West Convalescent Center in preparation for Hurricane Ike in Key West, Florida September 7, 2008. Hurricane Ike barrelled toward Cuba as an extremely dangerous Category 4 storm on Sunday and was forecast to sweep into the central Gulf of Mexico as a large and powerful storm echoing Hurricane Gustav. The densely populated Miami-Fort Lauderdale area in south Florida seemed an increasingly less likely target, but visitors were ordered to flee the vulnerable Florida Keys island chain on Saturday. REUTERS/Carlos Barria  (UNITED STATES)
    Could Florida Survive the Big One? Time.com - Sun Sep 7, 2:25 PM ET

    The next big hurricane could leave the state not merely damaged but in financial ruin

  2. Cars drive down the US 1 highway in Key Largo, Florida as Hurricane Ike approaches September 6, 2008. (Carlos Barria/Reuters)
    Killer Ike blasts Bahamas, lashes Cuba AP - 51 minutes ago

    CAMAGUEY, Cuba - Hurricane Ike roared across low-lying islands and bore down on Cuba, destroying homes, sweeping away boats and bringing more rain to waterlogged communities in Haiti, where it killed 48 more people.

  3. Republican presidential candidate, Sen. John McCain, R-Ariz., asks his vice presidential running mate, Alaska Gov. Sarah Palin what she ordered on a stop by Arthur Bryants BBQ for dinner Sunday evening upon their arrival in Kansas City, Mo. Sept. 7, 2008. (AP Photo/Stephan Savoia).
    Palin agrees to interview Politico - Sun Sep 7, 3:41 PM ET

    Under pressure for being shielded for questioning, Sarah Palin has a agreed to sit down with Charles Gibson of ABC’s “World News Tonight,” according to an ABC News official.

  4. Republican presidential candidate, Sen. John McCain, R-Ariz., smiles as his vice presidential running mate, Alaska Gov. Sarah Palin, talks about his accomplishments during an airport campaign rally Saturday afternoon, Sept. 6, 2008 in Colorado Springs, Colo. (AP Photo/Stephan Savoia)
    ABC News' Gibson lands first Palin interview AP - 1 hour, 6 minutes ago

    NEW YORK - Republican vice presidential candidate Sarah Palin has agreed to sit down with ABC's Charles Gibson later this week for her first television interview since John McCain chose her as his running mate more than a week ago.

  5. A family poses in front of Astroland Park in Coney Island, New York, Sunday, Sept. 7, 2008.  The owner of Coney Island's landmark Astroland amusement park is calling it quits. Carol Albert says she has told employees the park will permanently close on Sunday. Albert's family has owned the Brooklyn amusement park for almost a half-century and  says she is giving up on negotiating a two-year lease with Thor Equities, the developer that owns the seaside property. Thor spokesman Stefan Friedman said the firm was 'extremely disappointed' that Albert had 'decided to give up on the future of Coney Island' although her current lease was valid for several more months. (AP Photo/Seth Wenig)
    Owner: Ride's over at Coney Island amusement park AP - 53 minutes ago

    NEW YORK - When reports circulated over the weekend of a last-minute deal to keep Coney Island's historic Astroland amusement park open for another year, owner Carol Hill Albert was not amused.

  6. Republican vice-presidential nominee Alaska Governor Sarah Palin speaks at a campaign rally with U.S. Republican presidential nominee Senator John McCain (R-AZ) in Albuquerque, New Mexico September 6, 2008. (Brian Snyder/Reuters)
    McCain and Obama Vie Over Whether Palin Means Change Bloomberg - Sun Sep 7, 2:35 PM ET

    Sept. 7 (Bloomberg) -- Republican presidential candidate John McCain defended his running mate, Sarah Palin, as having a ``clear record of doing what America wants,'' while Democrat Barack Obama said her policies aren't much different from those of President George W. Bush.

  7. In this May 2, 2007 file photo, the Fannie Mae building in Washington is seen. The Bush administration, acting to avert the potential for major financial turmoil, on Sunday, Sept. 7, 2008 announced that the federal government was taking control of mortgage giants Fannie Mae and Freddie Mac. (AP Photo/Manuel Balce Ceneta, File)
    Bush: Takeover of housing giants 'critical' AP - 2 hours, 50 minutes ago

    WASHINGTON - President Bush said Sunday that the historic federal government takeover of mortgage giants Fannie Mae and Freddie Mac is needed to keep them from failing, a risk he called "unacceptable" for an economy battered by housing and credit crises.

  8. Cruise lines change course to cut fuel AP - Sun Sep 7, 3:18 PM ET

    PORTLAND, Maine - When the 1,020-foot Explorer of the Seas cruises through North Atlantic waters next year, it'll spend more time off the coast of New England and less time near Canadian shores, and it's not because of better vistas.

  9. Pal: Ashlee and Pete Expecting Twins(E! Online)
    Pal: Ashlee and Pete Expecting Twins E! Online - Sun Sep 7, 7:33 AM ET

    Los Angeles (E! Online) - Pete Wentz and Ashlee Simpson-Wentz could find themselves facing another round of twin rumors.

  10. Republican presidential candidate, Sen. John McCain, R-Ariz.,  speaks at a campaign rally at the Albuquerque Convention Center in Albuquerque, N.M., Saturday, Sept. 6, 2008. (AP Photo/Toby Jorrin)
    McCain takes on GOP and Bush along with Obama AP - 1 hour, 58 minutes ago

    ALBUQUERQUE, N.M. - Barack Obama isn't John McCain's only opponent. Sometimes McCain sounds like he's running almost as hard against President Bush and the Republican Party as he is against Obama, his Democratic rival for the White House.

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  1. In this July 2, 2008 file photo, a foreclosed home is seen for sale in Sacramento, Calif.  A record 9 percent of American homeowners with a mortgage were either behind on their payments or in foreclosure at the end of June, as damage from the housing crisis continues to mount, the Mortgage Bankers Association said Friday, Sept. 5, 2008. (AP Photo/Rich Pedroncelli, file)
    Fannie, Freddie blind to the bubble AP - Sat Sep 6, 8:06 PM ET Avg. Rating: 4.8

    WASHINGTON - Mortgage giants Fannie Mae and Freddie Mac — despite their robust cadre of economists and mortgage experts — failed to heed warnings that the most dramatic housing bubble in U.S. history would burst.

  2. Conservation group WWF has said that Australian koalas are dying by the thousands as a result of land clearing in the country's northeast, while millions of birds and reptiles are also perishing.(AFP/File/Torsten Blackwood)
    Thousands of Australia's koalas felled by land-clearing: WWF AFP - Sun Sep 7, 10:17 AM ET Avg. Rating: 4.7

    SYDNEY (AFP) - Australian koalas are dying by the thousands as a result of land clearing in the country's northeast, while millions of birds and reptiles are also perishing, conservation group WWF said Sunday.

  3. Once-powerful Pa. senator faces long fraud trial AP - Sun Sep 7, 1:39 PM ET Avg. Rating: 4.6

    PHILADELPHIA - A longtime power broker in Pennsylvania politics earned nearly $100,000 a year as a state senator, up to $1 million a year as a rainmaking lawyer and millions more from the sale of a family bank.

  4. Thomas O'Brien, the U.S. Attorney for California's Central District, is photographed at his office in Los Angeles August 28, 2008. (Phil McCarten/Reuters)
    Prosecutor becomes figure in mortgage mess Reuters - Sun Sep 7, 3:34 AM ET Avg. Rating: 4.6

    LOS ANGELES (Reuters) - Thomas O'Brien, the U.S. Attorney for California's Central District, is emerging as a likely prosecutor in criminal cases expected from the U.S. mortgage meltdown.

  5. Dr. Waleed Ibraheem, manager of the intensive care unit at the Surgical Hospital in the Medical City, visits patients at the hospital in Baghdad, Iraq, Sunday, Aug. 31, 2008. (AP Photo/Hadi Mizban)
    Health chiefs battle to bring back Iraqi doctors AP - Sun Sep 7, 12:54 PM ET Avg. Rating: 4.6

    BAGHDAD - A kidney specialist who fled Iraq's bombings, kidnappings and sectarian killings 20 months ago has reported back to work at his Baghdad hospital — one of some 800 doctors who have returned over the summer.

  6. China to launch space mission in late September AP - Sun Sep 7, 5:34 AM ET Avg. Rating: 4.6

    BEIJING - China will launch its third manned space mission in late September, featuring its first-ever space walk, a state news agency said.

  7. President Hugo Chavez meets with managers of the New SIDOR to discuss ' Plan of the New SIDOR Socialist, during a television broadcast in Caracas, Venezuela. August 21, 2008. (Miraflores/Handout/Reuters)
    Venezuela to host Russia navy exercise in Caribbean Reuters - Sat Sep 6, 10:31 PM ET Avg. Rating: 4.5

    CARACAS (Reuters) - Several Russian ships and 1,000 soldiers will take part in joint naval maneuvers with Venezuela in the Caribbean Sea later this year, exercises likely to increase diplomatic tensions with Washington, a pro-government newspaper reported on Saturday.

  8. Actor John Malkovich poses for a portrait while promoting the movie 'Burn After Reading' in Toronto, Canada during the International Film Festival Saturday Sept. 6, 2008. (AP Photo/Carlo Allegri)
    Malkovich gets mad in Coens' 'Burn After Reading' AP - Sun Sep 7, 9:31 AM ET Avg. Rating: 4.5

    TORONTO (AP) — The Coen brothers' new movie gave John Malkovich a chance to blow off some steam. Malkovich's seething character in "Burn After Reading" bursts out in perpetual tantrums, a nice exercise in anger management, according to the actor.

  9. Actor Tobey Maguire shakes hands with fans while making an appearance on NBC's 'Today' show in New York April 30, 2007. (Brendan McDermid/Reuters)
    Two more "Spider-Man" films on the way Reuters - Sat Sep 6, 11:14 PM ET Avg. Rating: 4.5

    LOS ANGELES (Hollywood Reporter) - Tobey Maguire and "Spider-Man" director Sam Raimi plan to reunite for the fourth and fifth installments of Columia Pictures' comic book franchise, dispelling speculation that a new actor would play the crime-fighter.

  10. Residents leave the area in the back of a pick-up truck after heavy rains in Gonaives, Haiti, Sunday, Sept. 7, 2008. Hurricane Ike damaged most of the homes on Grand Turk island as it roared onto the Bahamas, raked Haiti's flooded cities with rain and threatened the Florida Keys on its way to Cuba as a ferocious Category 4 storm Sunday.(AP Photo/Ariana Cubillos)
    Ike's floods add insult to Haiti's misery, kill 10 AP - Sun Sep 7, 1:59 PM ET Avg. Rating: 4.5

    GONAIVES, Haiti - Haitians took to their roofs to escape rising floodwaters Sunday for the second time in a week as squalls from Hurricane Ike added insult to their misery, inundating homes and collapsing a bridge on the last open land route for aid to the desperate city.