New Fannie/Freddie Infusion

[BigBagel]

http://www.nytimes.com/2010/10/22/bu...nnie.html?_r=1

Fannie Freddie may need more infusions of taxpayer cash/IOU's. The story gives a range of 6 billion to 124 billion. If the economy recovers it'll be in the six billion range. If house prices continue to fall it'll be closer to 124 billion. I'm willing to bet that 124 billion will turn out to be the optimistic number.

[thunderdownunder]

Re: New Fannie/Freddie Infusion

But will it be profitable for those that are paying (no not the middle men who transfer it)?
When they get it, then the FIDC will need more to cover the shortfall in 'Mark to Myth' over stated assets, now running at 38c on the Dollar. After all the banks pay FIDC insurance with money skimmed from Tax payers accounts.
When the Taxes are raised to pay the interest bill they will find an empty wallet in the rear of Joe taxpayer.

Your first loss is your best loss