Egypt News

This includes pledges of up to $200 billion to protect Fannie Mae and Freddie Mac, an $85 billion bridge loan for AIG, and a $29 billion loan guarantee for Bear Stearns.
As the crisis has progressed, the Fed has expanded the collateral against which it loans, including higher-risk assets and (in certain cases) equity. Through June 2008, the Fed had provided approximately $1.2 trillion in loans to various financial institutions through its Term auction facility.
The extent to which the federal government will suffer losses on these investments is not presently clear.
In addition, an estimated $1.2 trillion reduction in housing prices and slowing of the economy are expected to significantly reduce state and local property tax revenues.
The expectation of the falling state and local property tax revenues is affecting the ability of state governments to finance their operations through bond sales. Both the State of California and the State of Massachusetts have requested loans from the U.S. Federal Reserve to fund their operations since the credit markets have seized up.

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