Fannie Mae and Freddie Mac Run Up Huge Tab for Taxpayers
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 (continued).
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
WAIT BEFORE YOU GO...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.
This year, the ground feels uncertain — facts are buried and those in power are working to keep them hidden. Now more than ever, independent journalism must go beneath the surface.
At Truthdig, we don’t just report what's happening — we investigate how and why. We follow the threads others leave behind and uncover the forces shaping our future.
Your tax-deductible donation fuels journalism that asks harder questions and digs where others won’t.
Don’t settle for surface-level coverage.
Unearth what matters. Help dig deeper.
Donate now.
You need to be a supporter to comment.
There are currently no responses to this article.
Be the first to respond.