Obama Times Mortgage Forgiveness Perfectly…

Get ready for the snake-oil salesman to go all in as he prepares to make the voters swoon, cry, and wave their arms in the air yet again. On the heels of another $1.5 Billion requested bailout from Fannie, (who has suffered 12 straight months of losses), we have the Obama political machine maneuvering to … Read more Obama Times Mortgage Forgiveness Perfectly…

Fannie And Freddie; The Bottomless Pit

Whatever the fix, the money spent will not be recovered, said Alex Pollock, a former president of the Federal Home Loan Bank of Chicago who is now a fellow at the Washington-based American Enterprise Institute. “It doesn’t matter what you do or don’t do, Fannie and Freddie will cost a lot of money,” Pollock said. “The money is already lost. There’s an attempt to try to avert your eyes.”

Quoting Sen. Gregg, here is the herd of elephants in the room, (no mention of these two in the Dodd financial reform bill):

Fannie-Freddie Fix at $160 Billion With $1 Trillion Worst Case

June 14 (Bloomberg) — The cost of fixing Fannie Mae and Freddie Mac, the mortgage companies that last year bought or guaranteed three-quarters of all U.S. home loans, will be at least $160 billion and could grow to as much as $1 trillion after the biggest bailout in American history.

Fannie and Freddie, now 80 percent owned by U.S. taxpayers, already have drawn $145 billion from an unlimited line of government credit granted to ensure that home buyers can get loans while the private housing-finance industry is moribund. That surpasses the amount spent on rescues of American International Group Inc., General Motors Co. or Citigroup Inc., which have begun repaying their debts.

“It is the mother of all bailouts,” said Edward Pinto, a former chief credit officer at Fannie Mae, who is now a consultant to the mortgage-finance industry.

Read moreFannie And Freddie; The Bottomless Pit

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