Saturday, January 02, 2010

Fannie Mae, Freddie Mac to Cost Taxpayers $400 Billion

George Bush and many other Republicans warned about the two quasi-governmental mortgage companies. Meanwhile, Democrats like Barney Frank continued to push for expansion of mortgage lending by the two companies. Other Democrats like Rahm Emannuel and Jamie Gorelick made millions while working for the companies. And now we get the bill

Dec. 31 (Bloomberg) -- Taxpayer losses from supporting Fannie Mae and Freddie Mac will top $400 billion, according to Peter Wallison, a former general counsel at the Treasury who is now a fellow at the American Enterprise Institute.
“The situation is they are losing gobs of money, up to $400 billion in mortgages,” Wallison said in a Bloomberg Television interview. The Treasury Department recognized last week that losses will be more than $400 billion when it raised its limit on federal support for the two government-sponsored enterprises, he said.
The U.S. seized the two mortgage financiers in 2008 as the government struggled to prevent a meltdown of the financial system. The debt of Fannie Mae, Freddie Mac and the Federal Home Loan Banks grew an average of $184 billion annually from 1998 to 2008, helping fuel a bubble that drove home prices up by 107 percent between 2000 and mid-2006, according to the S&P/Case- Shiller home-price index.

There is no limit to the stupidity and incompetence of the left.

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