Saturday, February 26, 2011

Taxpayer-Owned Freddie Mac Loses $19.8 Billion In 2010

Taxpayer Owned Freddie Mac Loses $19.8 Billion In 2010 - Home - The Daily Bail
"The total bailout of Fannie and Freddie is likely to cost at least $260 billion (Robert Shiller says $1 trillion - CBO says $400b) by the time the government is done using them as landfills for the banks' fraudulently created assets. Of course, by the way that Tim Geithner does math, that amounts to a "profit" for taxpayers on the bank bailouts. Maybe he can explain how this works when he testifies before Congress next week."

Yeah, but it's SO worth it.  We definitely get $20 billion worth of utility out of Freddie Mac. (insert eye roll)


Jazzie Casas said...

"Fannie and Freddie play a central role in our housing finance system and must continue to do so in their current form as shareholde­r-owned companies. Their role in the housing market is particular­ly important as we work through the current housing correction­. The GSEs now touch 70 percent of new mortgages and represent the only functionin­g secondary mortgage market. The GSEs are central to the availabili­ty of housing finance, which will determine the pace at which we emerge from this housing correction­. ...

OFHEO has reaffirmed that both GSEs remain adequately capitalize­d. At the same time, recent developmen­ts convinced policymake­rs and the GSEs that steps are needed to respond to market concerns and increase confidence by providing assurances of access to liquidity and capital on a temporary basis if necessary.­"

home buyer

Anonymous said...

What you don't seem to grasp is that Fannie and Freddie were key contributors to the financial crisis. The mortgage buying they do creates artificial demand, which mortgage originators and Wall Street firms take advantage of. The "functioning" secondary market they ate making is false. What's the matter with demand from the secondary market being down? All markets go through trough periods. Don't you think, of all markets, there is a gigantic oversupply in this one? It seems quite reasonable to me that the secondary market might be a bit low-volume right now.
Also, if you're a home buyer, wouldnt it be to your benefit to have prices come down?