“The US Treasury's takeover of Fannie Mae and Freddie Mac, the nation's largest mortgage financers, was predictable.”
“In the past, Fannie and Freddie showered large sums on members of Congress to win votes and retain their privileged position. Although those payments are now illegal, Fannie and Freddie have many friends on Capitol Hill who believe the GSEs are essential to [so-called] affordable housing; they will fight hard to maintain the status quo.”
“Preserving the status quo by maintaining Fannie and Freddie's crony capitalism would expand the size and scope of government, rather than make individuals responsible for their mistakes.”
“The takeover of Fannie and Freddie could cost taxpayers US$200 billon to US$300 billion - and far more if housing prices fail to stabilise.”
Click here for the primary post on why this bailout is a TERRIBLE idea.
Click here to learn what caused this housing mess.