Posted on 03/29/2010 2:49:26 AM PDT by Scanian
Fannie Mae and Freddie Mac recently announced fresh losses, bringing their total since the fall of 2008 to $126 billion.
It barely registered as news -- although taxpayers are completely on the line for the bad debt of these government-sponsored enterprises.
There's a chance that the support thrown at the rest of the financial sector -- $465 billion of direct capital, $285 billion of loan guarantees and insurance of $418 billion of assets -- isn't all money down the drain. $175 billion has been returned, the loan guarantees look much safer, and the insurance program, mainly for Citigroup, has been terminated.
Even the poster child for financial excess, AIG, may be able to fully pay off the government if the housing market doesn't deteriorate further or the economy substantially improves.
But the chances are slim to none that Fannie or Freddie will be able to pay back the funds. It is highly likely that taxpayers will lose well over $200 billion -- and it may well pass $300 billion.
(Excerpt) Read more at nypost.com ...
I hope after November there will be a true investigation.
With all the RINO and Democrats that my be wishful thinking.
George W M D Bush did nothing to help
Please put Barney and Dodd in jail for scamming good folks out of their money and homes.
When are Fannie May and Freddie Mac going to be closed down for good? They cannot endlessly hemorrhage cash, there has to be an honest reckoning sometime.
Pay off the toxic loans and get them OUT of the system. That has to be cheaper than what is now being done.
Some people were never MEANT to be homeowners, and they make lousy renters as well. Just look at the “public housing” debacles in every city of any size in America, or the Section 8 housing program.
Are there enough cardboard boxes and highway overpasses to shelter these people?
That is unlikely. It is my understanding that the Fed, Fan, and Fred are toxic waste dropoff centers for banks...
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