The news that Treasury Secretary Paulson and Fed Chairman Bernanke are trying to reassure the broader markets that Fannie Mae (FNM) and Freddie Mac (FRE) will not be allowed to fail has not produced the expected calming effect on the markets. Shares of both firms have plunged into single digits. Who would have thought that FNM and FRE would become disastrous ticker symbols whose survival is now being debated? The full faith and credit of the US government is being tossed out as a lifeline, if necessary. Whom would such a lifeline rescue? What will happen to mortgage products, origination – packaging – servicing business models, and the overall housing market?