On Freddie And Fannie

Barack Obama's campaign has been cautious in its response to market concerns that government-sponsored mortgage companies Fannie Mae and Freddie Mac could requre a federal bailout.

The companies' shares are falling, and some investors are concerned the two giants could default on their debt, which would send ripples through the economy since their securities are held by financial institutions and investors all over the world.

Here's the statement the Obama campaign released a short time ago:

"Senator Obama has long believed we should take all necessary steps to ensure affordable homeownership for millions of American families, and that includes an essential role for Fannie Mae and Freddie Mac," said Obama spokesman Bill Burton. "Nearly a year ago, Senator Obama called for a major response to the housing crisis and significant relief for struggling homeowners. It took Senator McCain three different tries to figure out a real response to the housing crisis, and his current plan does nothing to help more than two million homeowners who are facing foreclosure."

The statement does not address whether the government should intervene to help Fannie Mae and Freddie Mac or if the Treasury should back these loans, in order to avert the kind of crisis of confidence that sank Bear Stearns.

The Associated Press reports that John McCain has said the government cannot let Fannie Mae and Freddie Mac go under.

When pressed for more, Burton sent this response: "In a rapidly evolving situation it does not make sense to comment on each and every one of the many specific actions that could potentially be taken to this end."

Obama has not publicly addressed the matter. He is OH today where he just finished a town hall in Dayton about America's energy security.

(NBC/NJ's ATHENA JONES)