October 11, 2008 (Saturday): Bush Gets Friendlier With North Korea; Who's Buying Up Troubled Mortgage Securities?

Published Oct. 11, 2009 at 4:00 a.m.

A New Friend in North Korea?

The Bush administration makes a deal with North Korea, announced today, for inspectors to visit some facilities. North Korea is also to disable a reactor that produces weapons-grade plutonium. In exchange, the U.S. takes North Korea off the list of countries that sponsor terrorism. A State Department spokesperson says the deal, shepherded by Secretary of State Condoleezza Rice, includes “every single thing” the U.S. asked for.
(For more on this news, click here, here and here.)

Fannie and Freddie’s Deep Pockets

Bloomberg reports that the Federal Finance Housing Agency directed Fannie Mae and Freddie Mac, the U.S.’s biggest mortgage finance lenders, each to buy up $20 billion of failing mortgage bonds a month. According to the story, the order came in September, and since then the companies have been telling bond traders that they need to buy up underperforming mortgage securities. Spokespeople from the companies declined to comment.
(For more on this news, click here and here.)

Rude Rally

A CBS video camera catches a supporter at a Palin rally in Pennsylvania holding up a stuffed toy monkey with an Obama sticker on it. Crowds at rallies for the Republican candidates have become increasingly verbal and angry as Palin plays up Obama’s relationship with William Ayers.
(For more on this news, click here and here.)

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