Tuesday, March 23, 2010
Geithner: Taxpayers Are Likely to Face "Very Substantial" Losses From Government's Takeover of Fannie and Freddie
Tim Geithner told the House Financial Services Committee today that txpayers are likely to face "very substantial" losses from the government's takeover of home mortgage giants Fannie Mae and Freddie Mac.
As Shahien Nasiripour notes:
Taxpayers have pumped more than $125 billion into the failed firms -- and on the hook for many more after the administration promised an unlimited source of funds just before Christmas to backstop their growing losses.
And as Nasiripour points out, Geithner has absolutely no idea how to fix Fannie or Freddie.
Heck of a job, Timmy.
5 comments:
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Wow, what an Oracle, like no one could have predicted that BEFORE they wrote the blank check? Who could have predicted that taking on gazillions of dollars in loans written to people with no means to ever pay them off wouldn't be a smart move?
ReplyDeleteGrrrRRRRrrr... why must they say "taxpayers have"... can't they use something more accurate like "we have....$125 billion of taxpayers'..."
ReplyDeleteRead this.http://online.wsj.com/article/SB10001424052970204251404574344700380597382.html
ReplyDelete"The Obama Treasury has been no different and has ginned up the two companies to expand their debts amid the housing meltdown by guaranteeing more residential mortgages"
Instead of the banks getting more bailouts they will just put their debt onto the gov-ments balance sheets. err, taking money out of your pockets.
Go get help Lassie, go get help.
ReplyDeleteGreat post RE: lassie...maybe jeddidiah will be back soon. I hear his solution is bulletproof.
ReplyDelete