What could cost taxpayers more than $1 trillion

[picflight_IHB]

This Fannie and Freddie, sisters of the government are not looking too good. We the tax payers could be left holding the very short end.



<strong>The Fannie and Freddie doomsday scenario</strong><span style="font-size: 13px;"></span>



<strong>Read More</strong>

<a href="http://money.cnn.com/2008/07/09/news/companies/benner_fanniefreddie.fortune/?postversion=2008071013">http://money.cnn.com/2008/07/09/news/companies/benner_fanniefreddie.fortune/?postversion=2008071013</a>

 

[bltserv_IHB]

This could result in losses that are beyond the ability of the federal government

and the Fed to cover. This article from April seems strangly foretold.

http://money.cnn.com/2008/04/21/news/economy/fannie_freddie/



This is the point of capitulation for the housing market.

It could also be the tipping point for the American Economy.



How the Fed can bail out these 2 GSE`s and all the bad paper

they hold will bury us taxpayers in debt for another generation.

This will make the War in Iraq look like a Weekend Picnic from a cost standpoint.

 

[PadreBrian_IHB]

What I can't understand is why Bush is so impotent on this. Does he really want congress to step in and turn it into a socialist program...more like canada or the uk?