Money | Fannie Mae US Must Strike Fine Balance on Mortgage Bailout Deficit makes coordinated response economically, psychologically crucial By Jim O'Neill Posted Sep 8, 2008 11:34 AM CDT Copied Treasury Secretary Henry Paulson, Jr., left, and Federal Housing Finance Agency Director James Lockhart, right, exchanges places during their news conference in Washington, Sunday. (AP Photo/Susan Walsh) A global storm continues to threaten the world’s economies, and the US government takeover of Fannie Mae and Freddie Mac is just one step, albeit a major one, toward recovery. Whether the latest attempt to right the ship succeeds "ultimately boils down to two big issues," writes Mohamed El-Erian in the Financial Times. Underlying both is the reality of globalization. Washington must do all it can to attract both domestic and international investment, allaying the fears of "foreign holders of US debt who have become increasingly skittish in recent weeks," writes El-Erain. And economic policymakers must stop planning ad hoc and learn from, of all entities, the countries that have recently coped with weather disasters, which understand "the importance of a holistic response from the authorities." Read These Next New Fox star, 23, misses first day after car troubles. White House rolls with Trump's 'daddy' nickname. Man accused of killing his daughters might be dead. Supreme Court ruling is a big blow to Planned Parenthood. Report an error