Read the Bills Act Coalition

Saturday, January 2, 2010

U.S. to Lose $400 Billion on Fannie, Freddie, Wallison Says - Bloomberg.com

U.S. to Lose $400 Billion on Fannie, Freddie, Wallison Says - Bloomberg.com:

"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."

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