Financial markets continue to be plagued by mortgage and credit market problems

The disruption in mortgage and credit markets that emerged last summer continued to plague financial...

The disruption in mortgage and credit markets that emerged last summer continued to plague financial markets in the first half of 2008. Stocks were further pressured by sharp increases in oil and commodity prices, which contributed to fears about inflation and a slowdown in consumer spending. Most major stock indices are down around 20% over the last 12 months. In early July, investors became increasingly concerned about the financial condition of Fannie Mae and Freddie Mac. In response, the US Treasury and Federal Reserve announced a plan to extend lines of credit to the mortgage buyers ...