Congressional Digest

Congressional Digest November 2008 No. 9 Vol. 87
Forestalling Economic Disaster

Forestalling Economic Disaster

Congress Responds to the Credit Crunch

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Excerpt

September 2008 will be remembered as one of the most
suspenseful and dramatic times in U.S. economic and political
history — and potentially one of most consequential.
It began with the Federal takeover of
government-sponsored enterprises Fannie Mae and
Freddie Mac and concluded with passage of a massive
bailout package designed to provide relief for frozen credit
markets and restore confidence in the Nation’s troubled
financial system.

By early October, the turmoil had ballooned into the
worst financial crisis since the Great Depression, spreading
to global markets. World leaders were coordinating…

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