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Thread: Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion

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    Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion

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    For American taxpayers, now on the hook for some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans, that amount could be just the tip of the iceberg.

    According to the Congressional Budget Office, the losses could balloon to $400 billion. And if housing prices fall further, some experts caution, the cost to the taxpayer could hit as much as $1 trillion. )

    Apparently, as nothing appears to be done to prevent these appalling losses, it would seem that the Obama Administration prefer to sweep it under the carpet as it were and forget it.

    Quote(Two things are clear: Taxpayers don’t want to foot the bill, and Fannie and Freddie, taken over by the government in 2008 to stanch the financial bloodletting, need a major overhaul.

    “Some of us who don’t even own homes are paying to support others and their home ownership, and they ask ‘why?’ said Robert J. Shiller, a Yale University economics professor and co-creator of the S&P/Case-Shiller Home Price Indices. )

    Even for Socialists, this is not an ideal way to run these two monstrosities.





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    Re: Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion

    More proof Gov't, is not the answer.
    Climate, changes. It takes a particularly uneducated population to buy into the idea that it's their fault climate is changing and further political solutions can fix it.



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    Re: Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion

    Quote Originally Posted by MrVicchio View Post
    More proof Gov't, is not the answer.
    Quick question: what would be the result of liquidationism?
    It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion.
    "Wealth of Nations," Book V, Chapter II, Part II, Article I, pg.911

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    Re: Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion

    Never ceases to amaze me that people often fail to read the article attached to a thread.

    Possible answer

    Quote from article(One possible scenario for the entities is to turn them into utilities, said Sean Dobson, CEO and chair of Amherst Securities, whose company trades as much as $50 billion in mortgages annually.

    “Freddie and Fannie could be used to standardize the mortgage product,” Dobson said, “to completely describe what the risks are and then act as a conduit for the capital markets to take the risk.” )

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    Re: Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion

    Quote Originally Posted by Goldenboy219 View Post
    Quick question: what would be the result of liquidationism?
    Keep throwing money into failed programs and you might ask that about the US Gov't.
    Climate, changes. It takes a particularly uneducated population to buy into the idea that it's their fault climate is changing and further political solutions can fix it.



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