Tuesday, September 9, 2008
Fannie and Freddie Bailout Destined to Fail
Fannie and Freddie Bailout Destined to Fail as US Debt Doubles
With Sunday's announcement of the most massive federal bailout of all time, it's now official: Fannie Mae and Freddie Mac, the two largest mortgage lenders on Earth, are bankrupt. Some Washington bigwigs and bureaucrats will inevitably try to spin it. They'll avoid the "b" word with vengeance. They'll push the "c" word (conservatorship) with passion. And in the newspeak of 21st century bailouts, they'll tell you "it all depends on what the definition of solvency is."
Posted by nadeem walayat @ 09:04 AM (462 views)
One thought on “Fannie and Freddie Bailout Destined to Fail”
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mountain goat says:
“Fannie’s and Freddie’s mortgage obligations are just as big as the total amount of Treasury debt outstanding.”
In April 2008 S&P said that “The US could Lose its Triple AAA Credit Rating if it bailed out Fannie and Freddie“