For all intents and purposes the US taxpayer own these two housing agencies. We were forced to spend taxpayer money to save them. Unfortunately, the money was simply wasted. Two years after their bailouts, they continue to be money pits and the losses keep stacking every quarter. Our financial stooges Geithner and Bernanke make claims that this was necessary and we would make money. Of course, that is a load of crap.
Why would you keep pumping money in a loss cause. Our taxpayer money could be better spent elsewhere. We have big budget deficits and wasteful spending like this only contributes to that.
Reporting from Washington — The taxpayer bailouts of housing finance giants Fannie Mae and Freddie Mac could cost as much as $363 billion through 2013, according to government projections released Thursday.
The Federal Housing Finance Agency, which has regulated the former government-sponsored enterprises since they were seized during the financial crisis in 2008, said the figure was based on the worst of three scenarios for the economy and housing market that assumes a “deeper second recession.”
Under the best-case scenario, which would be a “stronger near-term recovery” in housing prices, the bailouts of Fannie and Freddie would reach $221 billion. The third scenario, in which housing prices continue on their current projections, would result in the combined bailouts reaching $238 billion.
So far, Fannie and Freddie have received about $148 billion in taxpayer money since they were seized by Bush administration officials and placed in government conservatorship. Taxpayers now own 79.9% of the two companies.
“These projections are intended to give policymakers and the public useful snapshots of potential outcomes for the taxpayer support of Fannie Mae and Freddie Mac,” said Edward J. DeMarco, FHFA’s acting director. “These are not predictions; the results reflect the potential effects of a limited set of hypothetical changes in house prices, a key variable driving credit losses for the enterprises.”
DeMarco told a House subcommittee last month that taxpayer losses from Fannie and Freddie likely wouldn’t top $400 billion, as some have feared, but did not provide specific data. In December, concerns mounted about the potential cost of the bailouts after the Obama administration lifted a $400-billion cap through 2012.
Olivia Wilde
Megan Fox
Bar Refaeli
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