Tuesday, May 19, 2009

The black hole of Fan and Fred

Looks like more transfusions, er, bailouts, uh "investment" may be needed to keep Fannie Mae and Freddie Mac on life-support:
The Office of Management and Budget released a report yesterday on the budgets and proposed overhauls of Fannie Mae and Freddie Mac that included the possibility of liquidating their assets. But don't get your hopes up.

The two government run mortgage finance companies have been scandalously costly for tax-payers, costing Americans far more in bailout money than they ever saved in cheaper mortgages. The OMB says that the two companies will need at least $92.2 billion more in fiscal 2010. This is on top of the $78.2 billion in aid they've received since they were taken over by the government in September. ...

Article here. Hey, what's another $92 billion or so between friends? Remember, they're "too big to fail."

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