Just when you were thinking it just couldn’t get any higher…The current administration let you know that you were right. According to current projections, the cost of rescuing government-controlled Fannie Mae and Freddie Mac will sink as they are slowly phased out of existence, the Obama administration announced today[1]. While the “rescue has cost $131 billion to date, by 2021 keeping the two GSEs afloat will have cost “only” $73 billion as the defunct entities pay dividends back to the Treasury Department. And, in even more good news, that $131 billion is much lower than some estimates which were as high as $685 billion.
According to White House estimates, by 2013 the GSEs will be paying more back to the Treasury than they are taking in and by 2014 they will no longer need funding. Any proposals to scale back Fannie and Freddie or the government’s involvement in their management are projected to take five years or longer.
Does this sound like good news to you? Do you think that the government will really let Fannie and Freddie go and should they do so?
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[1] http://online.wsj.com/article/SB10001424052748703584804576144160781314264.html?mod=googlenews_wsj
They have lied about all of the numbers so far, every drop has only been accounting slight of hand, why believe them now?
No I do not believe them, they have shown no reason to do so!
this crash-test dummy we have for a so called president is so blatant in the placement of his economic land mines that only a populace this stupid could have ever been caught so pathetically asleep at the switch… what now serves only as another cog of destruction in der fuehrer’s economy mangling machinery, could at the onset of this debacle, prevented the domino scenario by funding the implied fannie/freddie guarantees to all that worthless paper they put on the street… seems somewhere around $650 billion could have funded a 30% buy down of every worthless government mandated loan they peddled, which would have paved the way for a reasonable absorption of inventory by repositioned investors, and thereby avoided the chain reaction that ate wall street and our economic stability… not chicken feed, but a hell of a lot less than the thinly veiled government power grab they euphemistically refer to as a “rescue”… if we of the real estate industry, where this whole fraud was played out, allow this lie riddled deception to stand unchallenged, we will be overseeing our own demise…