Fannie-Freddie Bailout Could Cost Taxpayers $1 Trillion

cnbc.com

For American taxpayers, now on the hook for some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans, that amount could be just the tip of the iceberg.

According to the Congressional Budget Office, the losses could balloon to $400 billion. And if housing prices fall further, some experts caution, the cost to the taxpayer could hit as much as $1 trillion.

Two things are clear: Taxpayers don’t want to foot the bill, and Fannie and Freddie, taken over by the government in 2008 to stanch the financial bloodletting, need a major overhaul.

“Some of us who don’t even own homes are paying to support others and their home ownership, and they ask ‘why?’ said Robert J. Shiller, a Yale University economics professor and co-creator of the S&P/Case-Shiller Home Price Indices.

The indices measure the US residential housing market by tracking changes in the value of residential real estate both nationally and in 20 metropolitan regions.

Shiller added that the mission of Fannie and Freddie should be severely cut back “so that they’re not helping middle-class homeowners, [but] they’re helping poor people get into the housing market.”

At the crux of the financial crisis, the government took over Fannie and Freddie to avert possible massive losses for banks, money-market funds and, perhaps, most importantly, foreign institutions that purchased billions of Fannie and Freddie debt because of its implied government guarantee.

The Chinese, for example, had invested heavily, and the US decided it didn’t want them to take a loss on their investment.

One possible scenario for the entities is to turn them into utilities, said Sean Dobson, CEO and chair of Amherst Securities, whose company trades as much as $50 billion in mortgages annually.

“Freddie and Fannie could be used to standardize the mortgage product,” Dobson said, “to completely describe what the risks are and then act as a conduit for the capital markets to take the risk.”

Views: 52

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

tjdavis posted a photo
2 hours ago
Doc Vega posted a blog post
7 hours ago
Less Prone left a comment for Tammy
"Welcome"
18 hours ago
tjdavis posted a video

Mike Benz: DARPA & USAID are Weaponizing Music to Control Human Behavior

Watch every episode ad-free & uncensored on Patreon: https://patreon.com/dannyjonesMike Benz is a former State Department official and current Executive Dire...
yesterday
Tammy is now a member of 12160 Social Network
Tuesday
Less Prone commented on cheeki kea's photo
Thumbnail

The Cartel

"In his 1995 book; Bloodlines of the illuminati, Frits Sringmaier listed the following 13…"
Tuesday
tjdavis posted a photo
Tuesday
tjdavis posted a blog post
Tuesday
Less Prone commented on Doc Vega's blog post What Four UFO Whistle Blowers All Suffered in Common?
"This falls in the category of political assassination, a very shameful policy of eliminating people…"
Tuesday
Doc Vega posted blog posts
Tuesday
Doc Vega commented on Doc Vega's blog post The Forest Devil
"cheeki kea Thank you, just one thing. The Choctaw Indian who came to the rescue was a war veteran…"
Monday
cheeki kea commented on Doc Vega's blog post The Forest Devil
"Well that is one fine story you've got going there Doc V. with a very interesting roll up. I…"
Monday
Doc Vega commented on Doc Vega's blog post “Night of Horror” Finland WWII 1939 and a Russian Massacre
"Just another bizarre chapter in WWII that seems more suspect as paranormal."
Sunday
Doc Vega's 7 blog posts were featured
Sunday
Burbia's blog post was featured

Former President Trump?

When was this article written? It is attributed to Victor Davis Hanson. He is a Fellow at Hoover…See More
Sunday
Less Prone commented on Burbia's blog post Former President Trump?
"It must be an unintended mistake "former". But that Trump demanded to keep Khan away is a…"
Sunday
Less Prone favorited Doc Vega's blog post The Mistake We Made in America
Sunday
Less Prone favorited Doc Vega's blog post “Night of Horror” Finland WWII 1939 and a Russian Massacre
Sunday
Less Prone commented on Doc Vega's blog post “Night of Horror” Finland WWII 1939 and a Russian Massacre
"Quite an uplifting story of the winter war. Finland was overpowered by ten to one and could still…"
Sunday
Doc Vega posted a blog post

Elon Weighs in on Charlie Kirk's Assassination and How it is an Instrument of Social Control

For a very long time now there has been in place mass population behavioral control operations that…See More
Saturday

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted