The financial world is still reacting to the news that the Federal Government is taking over Freddie Mac and Fannie Mae.

But what does the take over mean for Northlanders... Trevor Roy spoke with a financial analyst and has more.

The eminent collapse of two financial giants prompted the Federal Government to take over management of Freddie Mac and Fannie Mae.

This is the second time in as many months that the government has stepped in to try to shore up the struggling mortgage companies.

In July, congress authorized government officials to inject billions of dollars into the companies.

The latest aid is much more sweeping, but financial analyst Neil Atkins says if the government didn't do something the consequences would've been much worse, "If those two companies failed the mortgage crisis we have right now would be much much worse and the shockwaves would go all over the world."

There is good news to report however Atkins says locally people might see mortgage rates go down, "Now with the government stepping in, we're probably going to see those mortgage rates go down, right now mortgage rates have gone up because of all the chaos in the mortgage industry, now with stability of the government we may see the mortgage rates go down to 5 and half percent, between 5.5. and 5.25 percent."

The take over plan would effectively turn every tax paying citizen into a shareholder of the companies.

The markets are still reacting to the news of the take-over and Atkins says investors are going to have to wait till Monday to see how the market reacts to the news, "Tomorrow when we see the markets open we don't know what's going to happen with stocks and that, there're probably not going to be worth a lot both companies a year ago the shares traded at about 68 to 70 dollars a share, and on Friday, I believe they were down to 3 bucks a share."

People shouldn't expect mortgage rates to go down immediately, the markets still havbe to react to the news and both companies will be re-organized.

Atkins says after the reorganization it will be up to the next president to decide where Freddie Mac and Fannie Mae go from here.