Monday, December 28, 2009

Losses at Freddie and Fannie Uncapped

I guess they have a direct lifeline to our wallets now. I would be willing to bet that the total amount sunk into these companies will never be known.

The Obama administration, which has been using the GSEs to stabilize the housing market by reducing their underwriting standards, upped the ante to $200 billion each. Now the administration has thrown in the towel completely, and dropped a large lump of coal in each taxpayer’s stocking—it won’t even try to estimate the total losses of Fannie and Freddie.

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