Yet Another Multi-Hundreds-of-Billions-of-Dollars Bailout for Fannie & Freddie Looms On the Horizon

Yet Another Multi-Hundreds-of-Billions-of-Dollars Bailout for Fannie & Freddie Looms On the Horizon doctorbulldog | 21 October, 2010 at 11:43 am | Categories: Economics, Economy, Money, Obama Sucks, politics | URL: http://wp.me/p1NPg-6BU

Here's a radical idea for Our Dark Overlords; quit wasting our hard-earned money and just let Fannie and Freddie wallow in their own filth.  Sure, the markets will temporarily crash and all, but they'll soon recover and be stronger for it:

Fannie, Freddie bailout could double, regulator says
Zachary A. Goldfarb - Washington Post
Thursday, October 21, 2010

The federal bailout for Fannie Mae and Freddie Mac could double in size during the next three years, according to projections from the companies' federal regulator.

Fannie and Freddie, the federally controlled mortgage finance giants, probably will need at least another $73 billion and perhaps as much as $215 billion from taxpayers in the next three years to meet their financial obligations, the Federal Housing Finance Agency said, but much of that money would automatically be returned to the government.

[...]

To date, the Treasury has injected $148 billion into Fannie and Freddie. Under the worst-case scenario, in which the country enters a second recession, the total infusion would be $363 billion in three years. Under this scenario, if taxpayer dividends weren't being paid, the total outlay would be $259 billion.

Under a more moderate scenario, in which housing prices stay flat and then slowly rise, the total taxpayer bailout would be $238 billion. Excluding dividends, it would be $154 billion.

[...]

Fannie and Freddie were seized by their federal regulator in September 2008 as the crisis in the housing market threatened to topple them. The Bush administration pledged $200 billion to keep them solvent. Early on, the Obama administration doubled that number to $400 billion, and then late last year made an unlimited pledge of support.

[...]

 

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