Top Leaderboard, Site wide
Shop the Truthdig Gift Guide 2014
December 21, 2014
Truthdig: Drilling Beneath the Headlines
Sign up for Truthdig's Email NewsletterLike Truthdig on FacebookFollow Truthdig on TwitterSubscribe to Truthdig's RSS Feed

Get Truthdig's headlines in your inbox!


Loss of Rainforests Is Double Whammy Threat to Climate






Truthdig Bazaar
Requiem

Requiem

By Frances Itani
$24.00

more items

 
Ear to the Ground

Fannie Mae and Freddie Mac Run Up Huge Tab for Taxpayers

Email this item Email    Print this item Print    Share this item... Share

Posted on Oct 21, 2010
Flickr / futureatlas.com (CC-BY)

So, remember that whole bailout thing that began a couple of years ago? It’s not over yet, at least not when it comes to those delinquent housing giants Fannie Mae and Freddie Mac. According to new government projections, the Fannie and Freddie bailout fiasco could run up a $363 billion bailout bill for taxpayers through 2013. And as the Los Angeles Times reported Thursday, taxpayers are now the proud owners of almost 80 percent of both companies—lucky us!  —KA

Los Angeles Times:

The Federal Housing Finance Agency, which has regulated the former government-sponsored enterprises since they were seized during the financial crisis in 2008, said the figure was based on the worst of three scenarios for the economy and housing market that assumes a “deeper second recession.”

Under the best-case scenario, which would be a “stronger near-term recovery” in housing prices, the bailouts of Fannie and Freddie would reach $221 billion. The third scenario, in which housing prices continue on their current projections, would result in the combined bailouts reaching $238 billion.

Read more

More Below the Ad

Advertisement

Square, Site wide

New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

By lasmog, October 22, 2010 at 1:07 pm Link to this comment

It is truly amazing what American elites can get away with.  From starting needless wars to crashing the American financial system, they seem completely above the law.  What I find most perplexing about all this is the indifference evinced by most Americans. I feel that I am awake among a nation of sleepwalkers.

Report this

By Bushfatigue, October 22, 2010 at 12:18 pm Link to this comment

As purchasers of junk mortgages, and sponsoring mortgage pools, I guess as the paper they hold is declared to be worthless, these two institutions need this money to replenish their capital to continue to buy mortgages?
 
But for some of the mortgage and mortgage pools they guaranteed, I have a sinking feeling that they are paying off some of the banks and investors who created this junk, and contributed to this disaster—in another time, or another world, Fannie and Freddie would to be suing the bankers who created, sold or rated this worthless paper.

But I guess we should just quietly accept that like any good third world country, our elites are not going to be held accountable for the disasters they have visited upon our country, whether in the form of financial crimes or war crimes. 

Hell, even the pundits who helped lie us into a disastrous war, or at least urged is on with promises of “cake walks”, and who still agitate relentlessly for an attack on Iran, have suffered no consequences for being so disastrously wrong either.

Report this
 
Monsters of Our Own Creation? Get tickets for this Truthdig discussion of America's role in the Middle East.
Right 1, Site wide - BlogAds Premium
 
Right Skyscraper, Site Wide
Right 2, Site wide - Blogads
 
Join the Liberal Blog Advertising Network
 
 
 

A Progressive Journal of News and Opinion   Zuade Kaufman, Publisher   Robert Scheer, Editor-in-Chief
© 2014 Truthdig, LLC. All rights reserved.

Like Truthdig on Facebook