Fannie Mae and Freddie Mac’s Days Are Numbered, But It’s a Big Number
Imagine walking into the most profitable casino in Las Vegas, all you have is $100 in your pocket. Yet, because of your good credit, the casino allows you to play blackjack with $7000 at risk.
Palm Coast, FL – February 14, 2011
Our government allowed Fannie Mae and Freddie Mac to become a giant mortgage backed security hedge fund, complete with 70-1 taxpayer funded leverage.
They had sub Libor financing, meaning the luxury of borrowing money at one of the lowest interest rates in the world, all risks backed by the US taxpayer. To understand this kind of leverage imaging walking into the most profitable casino in Las Vegas, all you have is $100 in your pocket. Yet, because of your good credit, the casino allows you to play blackjack with $7000 at risk on the table. The slightest loss and your equity is wiped out. That’s exactly what happened to Fannie and Freddie and today the US taxpayers have lost well over $360 billion in this reckless risk taking bonanza. That’s over half the cost of the entire war in Iraq.
Full Story >>>> The Huffington Post
Running scared
Let’s face it, our representative government is running scared and throwing money at every pending problem because they are in a corner and see no other solutions…looks like a disaster coming at the day of reckoning
Huffington Post
Becareful of believing anything written on that site. Anti American anti bussiness radicals.
Reply to Doug
The only pieces I post with which I always agree are those that I write myself. I like to add other viewpoints as well. The Huffington Post has an occasional gem. And some of their posts are well researched. For instance, the articles by Randall Wray about MERS are the most thorough I’ve found.