S&P: Freddie Mac, Fannie Mae Bailout Could Near $700 Billion

Investor's Business Daily ^ | 11/4/10 | Ed Carson

[Nachum]

The taxpayer cost of bailing out mortgage finance giants Fannie Mae and Freddie Mac, already at $148 billion, will likely rise to $280 billion and could balloon to $685 billion, according to Standard & Poor’s:

With a growing portfolio of unsold homes, a sluggish economy, stubbornly high unemployment, the prospect of rising foreclosures, and billions in legacy losses, it appears unlikely in our view that housing and mortgage markets will be able to operate normally without continuing and substantial government involvement.

The ratings agency says the cost could hit $685 billion if the U.S. government sets up and capitalizes a new entity to replace Freddie and Fannie. S&P notes that the U.S. housing market is more dependent than ever on the government-sponsored enterprises, now under receivership. Freddie, Fannie and the Federal Housing Administration now buy more than 90% of all home loans vs. less than half before the housing crash.

[Constitutions Grandchild]

and when you add the Pension Fund bail outs Reid and the Dems promised to SEIU and Teamsters, et al., you're talking serious money. Any wonder how they returned Reid, Boxer and Carnahan to Washington??? Any wonder how their challengers lost by epic landslides when none were foreseen? Aw, people are sappy. Just plain sappy.

[Nachum]

The list, ping

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http://www.nachumlist.com/

[SC_Pete]

And bailing out California and New York. This is predictable and deliberate. Since the Community Reinvestment Act was passed by Jimmy Carter, this has been a MASS REDISTRIBUTION OF WEALTH. That’s why Clinton expanded Freddie and Fannie and why Dodd and Frank are so confident in their puclic pronouncements. The RATS ALWAYS KNEW THIS would blow up—and they don’t care. In their minds, this is a “SLICK” way to get more money to the “disadvantaged’ and the payments are so circuitous that the stupid SHEEPLE will never figure it out.

BUT WE HAVE, YOU CORRUPT BASTARDS!!!!!!!!

Big banks colluded on this: they are also commie RATS and saw this a a great way to make money. They are COMMIES and they like to make money. Perfect.

[p. henry]

Get the Feds out of the housing business. Liquidate Fannie and Freddie and repeal the CRA.

[demsux]

Issa's FIRST investigation should be Fannie/Freddie.

Issue supoena's for Dodd, Frank, Emanuel, Franklin Raines, Donilon.

[SC_Pete]

The FED is out of control. It threatens our very existence as a Republic. Ron Paul will be the new chairman of the subcommittee that oversees the FED. He will have subpeona power. GO, RON, GO.

[SC_Pete]

I agree wholeheartedly. Of course, they have already done so muc damage, it will be 50 years before this crap is stabilized.