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« Tim Geithner With Steve Liesman On Fannie, Freddie Reform Proposals (CNBC Interview) | Main | Obama: "You Can Take That To The Bank" »

UPDATE: Fannie, Freddie bailout could double in size to $360 Billion - It Will Eventually Be $1 Trillion

Yes, Barney is guilty.  And so are the banks who packaged shit into shinola.  We heard from another one of the guilty parties recemtly:

Steve Liesman interviews Yale Professor Dr. Robert Shiller of the Case-Shiller Index.  Shiller maintains that if house prices continue their fall, as he expects, taxpayers could see a $1 trillion loss on Fannie and Freddie.  Excellent clip.


From Diana Olick at CNBC

So out of the blue this morning I get a bill for anywhere from $221 billion to $363 billion; it wasn't addressed to me alone, but as a taxpayer I tend to take these things very personally.

The "projected" bill came from the overseer of Fannie Mae and Freddie Mac, the FHFA (Federal Housing Finance Agency), which "released projections of the financial performance of Fannie Mae and Freddie Mac, including potential draws under the Preferred Stock Purchase Agreements with the U.S. Department of the Treasury." (You can read the full release here)

It's the bill for the bailout.

So far the Treasury has infused $148 billion to keep Fannie and Freddie afloat; this as their book of business from the height of the housing boom continues to bleed through every band-aid applied. The "projections" released today, "are intended to give policymakers and the public useful snapshots of potential outcomes for the taxpayer support of Fannie Mae and Freddie Mac," writes FHFA Acting Director Edward DeMarco in the release.

Here's a look at some super scary scenarios of what the continuing mortgage mess is going to cost us all. There is a disclaimer: "The results do not define the full range of possible outcomes. This effort should be interpreted as a sensitivity analysis of future draws to possible house price paths."

Okay, now here we go.

The Deeper Second Recession assumes restricted access to credit, continued high unemployment and a reverse in the moderate rebound in home construction we saw in 2009. Peak-to-trough decline is 45 percent with the trough in Q1, 2012. From that trough, prices increase 11 percent through 2013. GSE bill: $363 billion.


Eventually the bailout bill will be $1 trillion:

Video:  Steve Liesman with Yale Professor Robert Shiller

For American taxpayers, now on the hook for some $145 billion in housing losses connected to Fannie Mae and Freddie Mac loans, that amount could be just the tip of the iceberg.  According to the Congressional Budget Office, the losses could balloon to $400 billion.  And if housing prices fall further, some experts caution, the cost to the taxpayer could hit as much as $1 trillion.



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I can't believe he showed his face in public:





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Reader Comments (10)

Oct 22, 2010 at 1:12 AM | Registered CommenterDailyBail
Fannie & Freddie: Obama’s $6.3 Trillion Off-Budget Scam Is America’s Shame (Jonathan Weil)

Oct 22, 2010 at 1:15 AM | Registered CommenterDailyBail
Oct 22, 2010 at 1:19 AM | Registered CommenterDailyBail
Who knew more than David Kellermann?

"David was engaged in all parts of the company," said Moffett, who tapped Kellermann as his chief financial officer before resigning the top post last month. "The CFO of any company in today's environment is a very stressful job . . . particularly when you're in a company that's undergoing a tremendous amount of change and uncertainty."

Oct 22, 2010 at 1:43 AM | Unregistered CommenterZ

Goldman Sachs & The AIG Criminal Cover-Up: Is Government Sachs Being Protected By SIGTARP Barofsky? (Newest From Janet Tavakoli)
Oct 22, 2010 at 1:44 AM | Registered CommenterDailyBail
Janet Tavakoli Says: Slap A 95% Windfall Tax On Goldman Profits

Oct 22, 2010 at 1:45 AM | Registered CommenterDailyBail
Why exactly do they need to be bailed out, or kept afloat?? What's wrong with letting them just die. Both Freddie and Fannie. Not only that, but this Foreclosure nonsense is pretty much every shade of wrong. We need a 100% REBOOT of the entire real estate system and market altogether, along with all the debt associated with it. They tanked the market on their own with their calls for deregulation that they took advantage of and packed all this dodgey debt as structured investment vehicles for quick instant money, but they actually thought that nobody would want to know how much all those packed loans were really worth. It's stupid and cruel, not to mention that it's a deliberate attack on not just the middle class, but America and property rights, through deliberate fraud. I say NO! Time to tell the banks and mortgage companies to get stuffed. ZERO foreclosures. You bought it and you live in it, it's yours, period. End of discussion. Too big to fail? Nah, FAIL!! DIE!! The banks don't get the properties, the mortgage companies don't get to foreclose, and the people stay in their homes and own them free and clear. End of. Done. From there, THEN, if the owners of these home want to put their houses up as collateral for a business loan to reignite the middle class through the proliferation of small businesses of every sort. From there, it's on them to handle their business and repayment of their business loans, at a reasonable and ethical interest. Everyone gets a do over. The banks can still be banks and the mortgage companies can still be mortgage companies, but they have to start over, cannot charge usurious rates. Mortgage companies can still do what they do, but the same goes for them, and when ANY house gets sold it should only be sold with a FEE. No interest. A FEE, and that's it. It's absolutely reprehensibly immoral and unfair to charge interest on a home loan. Sorry to be the bearer of bad news banks, but you've cheated long enough. No rate interest, because you cheated already with that stupid ARM b.s. and proven that you cannot be trusted to be too closely involved further beyond the sale. You get your money back plus a reasonable fee based on a percentage of the price of the home. You wanna charge interest, sorry but as good as it'll get for you will be an auto loan, credit card, or business loan. Aside from that, the banks have had their day, and they cannot be permitted to do like this again.

Then again, we all know that none of what I just said SHOULD happen, will.
Oct 22, 2010 at 1:53 AM | Unregistered Commentermewo nix
You will like this story DB...


Dr Kelly committed suicide in July 2003 after it was revealed that he had been speaking to journalists and revealing details of his work as a weapons inspector in Saddam Hussein’s Iraq.

Reports that Tony Blair’s government had “sexed-up” a dossier to make the case for removing Saddam more compelling were sourced back to Dr Kelly and it provoked a political storm. Dr Kelly, an intensely private man, was exposed and forced to face a Commons committee to account for his actions.

Weeks later he was found dead in a field near his Oxfordshire home having slit his wrists and taken painkillers.

But doubts about his death have refused to go away and in the summer Dr Nicholas Hunt, a Home Office pathologist, said he would welcome a new inquest into the death.
Oct 22, 2010 at 2:17 AM | Unregistered CommenterZ
well done mewo mix...that was a nice read...
Oct 24, 2010 at 4:52 PM | Registered CommenterDailyBail
well done mewo mix...that was a nice read...

Yea, you sure did your home work to the point you know they will neaver let us out of the shoe box goverment has placed us in. So lets give em all the greef we can at "Feeding Time" when they toss us a bread crum. We cant give up, but must understand what were up agunist. "Vote No More Spending"..............?
Feb 16, 2011 at 9:58 PM | Unregistered CommenterTexas Dar

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