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Did Geithner “Solve” the Fannie and Freddie Mess? Nope… Looks Like The Bailout Could Go as High as 1 Trillion for Taxpayers.

20 Jun

Looks like Tim Geithner didn’t really mean it when he said therew as a plan… a solution… nay, that he was “on it”. On What? Making sure we spent another TRILLION giving banks extra profits on top of their short positions and reckless gambling windfalls paid out by AIG?

Not looking good, not looking good at all…

Fannie, Freddie bailout could cost taxpayers $1 trillion

Fannie Mae and Freddie Mac guarantee almost $6 trillion in mortgages. The cost of fixing them will be the largest US bailout ever.

Fannie Mae (its headquarters sign in Washington is pictured in this 2008 file photo) and Freddie Mac could cost taxpayers $1 trillion in bailout money.

Manuel Balce Ceneta/AP/File

By Rocky Vega, Guest blogger / June 18, 2010

Things aren’t going well for Fannie Mae and Freddie Mac. First, the Federal Housing Finance Agency told them to delist from NYSE, and now, the real price tag of fixing the agencies is coming to light.

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Rocky VegaRocky is publisher of The Daily Reckoning (dailyreckoning.com). Previously, he was founding publisher of UrbanTurf and RFID Update, which he operated from Brazil, Chile, and Puerto Rico, and associate publisher of FierceFinance. He specialized in direct marketing at MBI, facilitated MIT Sloan School of Management programs, and has been featured on CBS.

In an interview below, Anthony Sanders, a professor of real estate finance at George Mason University, who was called to testify before the House Financial Services Committee, says we should be “very concerned” about Fannie and Freddie, which have become a “huge problem” for a nation with ballooning debt.

How big? Fannie and Freddie guarantee almost $6 trillion in mortgages, and the potential cost of fixing them will be the largest US bailout ever, potentially up to $1 trillion.

Of course, back in March Tim Geithner essentially said he was “on it,” but, according to this interview, nothing’s been done.

The interview came to our attention via The Daily Bail.

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