Posted Jun 14, 2010 12:06pm EDT by Henry Blodget
Bloomberg checked in on the state of Fannie Mae and Freddie Mac, the two once-quasi-private mortgage subsidy companies that are now almost wholly owned by taxpayers. Bloomberg found that Fannie and Freddie have already drawn down $145 billion in their unlimited line of taxpayer credit, and that their losses could ultimately be as high as $1 trillion.
To put that in context, Fannie and Freddie alone may consume more than the entire TARP Wall Street bailout, which was in the neighborhood of $800 billion. Fannie and Freddie’s taxpayer-money-vaporization will likely dwarf even that of AIG, which most people still consider the most appalling bailout beneficiary of all. LINK...
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These liabilities are staggering. Through out history every nation that followed this path of money printing, quantitative easing, government bailouts or what ever you want to call it, has ended up in a severe crisis, revolution or war. The future of western society is not looking so promising. Our most prosperous days are behind us, for a long time to come. BK
