This morning the government is bailing out the housing market's two mortgage giants, ready to reassure investors that they will stay sound.

U.S. Treasury Secretary Henry Paulson said, "[These companies'] continued strength is important to maintaining confidence and stability in our financial system and our financial markets."

The proposed bailout incudes three big steps: extending lines of credit with the treasury department for both Fannie Mae and Freddie Mac, giving treasury the authority to buy some stock to prop them up, and providing the Federal Reserve Bank authority to oversee both.

But the central bank's regulatory power can only be authorized by Congress. The two institutions hold or back half the country's $12 trillion in home mortgages.

The move comes on the heels of the collapse of IndyMac bank, which reopens today under federal management. A wave of bad loans forced regulators to step in Friday and take over the huge California lender. Customers were closed out of branches over the weekend, but they could still take cash out of automatic teller machines and write checks.

IndyMac customer Andre Milukoff said, "I didn't know this kind of stuff could happen anymore, since 1929. I didn't know it could happen in this day and age."

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