FANNIE AND FREDDIE THREATEN TAXPAYERS AGAIN

Investors.com -- 10/10/2011

http://www.investors.com/NewsAndAnalysis/Article/587615/201110101854/Doubling-Down-On-Our-Failure.htm

Fannie Mae and Freddie Mac, the two government-run mortgage enterprises, weirdly were never included in President Obama's supposed financial reform.

Now, looking at a federal debt growing by nearly $1.5 trillion a year, many of the same foreign investors who fueled our housing boom are wondering if they'll ever get their money back.
Even as the White House continues to try to expand the role the government-sponsored enterprises (GSEs) have in home lending, central banks and sovereign wealth funds across Asia and the Middle East are beginning to sell off their Fannie and Freddie holdings, according to a report from the Financial Times.

The American taxpayer, that means you, will be left holding the bag for the inevitable bankruptcy of Fannie and Freddie.

The financial threat is substantial. The Congressional Budget Office forecasts our national debt will surge from about $14.8 trillion now to $23 trillion by 2021.

That may be an understatement. Fannie and Freddie, now wards of the state, have an estimated $7.5 trillion in debts. These are carefully kept off the government's books — though, as we've seen, because of "too big to fail," U.S. taxpayers are on the hook for their mistakes.

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