I just heard on MSNBC that we will need a trillion dollars to fix Fannie and Freddie?

[secondwind]

Am feeling very concerned now... Will we EVER get our nose above water,here.............!!

[nichomachus]

1. Well, what luck we found all that stuff in Afghanistan

So, it's a wash

[jtuck004]

5. Except it belongs to Afghanistan. n.t.

[Capitalocracy]

6. Being the good friends of Afghanistan that we are, of course...

we could never allow them to make the mistake of falling into the trap of socialism with those minerals. We'll do them a favor and strongly advise them to give private companies the rights to mine and profit off of them.

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[jtuck004]

8. That's pretty likely.... n.t.

[nichomachus]

7. No, it belongs to us. They just happen to be sitting on it.

[theoldman]

2. A few hundred billion but not a trillion.

Their situation is similar to the Savings & Loan debacle in the 1980's.

[customerserviceguy]

3. The housing bubble

has been handed over to the US government to be the last sucker in line.

[HughMoran]

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

June 14 (Bloomberg) -- The cost of fixing Fannie Mae and Freddie Mac, the mortgage companies that last year bought or guaranteed three-quarters of all U.S. home loans, will be at least $160 billion and could grow to as much as $1 trillion after the biggest bailout in American history.

...

The Congressional Budget Office calculated in August 2009 that the companies would need $389 billion in federal subsidies through 2019, based on assumptions about delinquency rates of loans in their securities pools. The White House’s Office of Management and Budget estimated in February that aid could total as little as $160 billion if the economy strengthens.

...


Sean Egan, president of Egan-Jones Ratings Co. in Haverford, Pennsylvania, said that a 20 percent loss on the companies’ loans and guarantees, along the lines of other large market players such as Countrywide Financial Corp., now owned by Bank of America Corp., could cause even more damage.

“One trillion dollars is a reasonable worst-case scenario for the companies,” said Egan, whose firm warned customers away from municipal bond insurers in 2002 and downgraded Enron Corp. a month before its 2001 collapse.


...


http://www.bloomberg.com/apps/news?pid=20601010&sid=an_hcY9YaJas

[econoclast]

9. Note ... Delisting

This morning the Fedreal Housing Finance Agency directed that Freddie and Fannie shares be DELISTED from all national stock exchanges.

[fasttense]

10. Yeah, but it is Social Security and Medicare that need to be eliminated to fix

our deficit. Go figure.

[newfie11]

11. so divide that up to every home owner

with the understanding they pay off their homes and problem solved.

[Bigmack]

12. I don't think you and I "understand how these complex markets work"....

We're too naive.... that solution is too simple.

And besides, with that plan, nobody in the Finance Cartel would get a chance to skim off their cut.

My cynicism is growing exponentially.

[newfie11]

14. I'm thinking you are right n/t

[Name removed]

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