Fannie Mae And Freddie Mac Get Worse By The Minute….Just More Money Down The Toilet

Posted By on November 4, 2010

That flushing sound you hear is just more money down the toilet!

Two weeks ago, the FHFA, using Moody’s assumptions and modelling, said that a worst case scenario for Fannie and Freddie could result in total costs to taxpayers of $363 billion, an incremental $220 billion to the $148 billion already spent to keep the nationalized housing branch of the U.S. government. Today, S&P has released a stunner which says that actually fixing the GSEs, and “resolving and relaunching” the bankrupt entities, would actually cost as much as $685 billion, or over another half a trillion in taxpayer costs.

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