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

When will Congress call Fannie and Fred in for the hot seat tongue lashing?. Never. Both parties are to blame. Better to go after "big oil" or bankers or evil capitalists. Their mistakes were no accident, they are 100% the fault of the Congress which created the Federal National Mortgage Association, known as Fannie Mae, in 1938 to expand home ownership by buying mortgages from banks and other lenders and bundling them into bonds for investors. It set up the Federal Home Loan Mortgage Corp., Freddie Mac, in 1970 to compete with Fannie.

Fannie Mae and Fred Mac will cost the American taxpayer more than the BP spill and clean up. Estimated at $160 billion and rising, possibly to $1 trillion.

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