Discover and share the best of the web!
Learn more about Digg by taking the tour.
Fannie, Freddie Bailout Could Cost Taxpayers $25 Billion
huffingtonpost.com — The proposed government rescue of the nation's two mortgage finance giants will appear on the federal budget as a $25 billion cost to taxpayers, the independent Congressional Budget Office said on Tuesday even though officials conceded that there was no way of really knowing what, if anything, a bailout would cost.
zaibatsu- 143 diggs
- digg it
- finkx, on 07/22/2008, -0/+3wowzers!
- Berkana, on 07/23/2008, -2/+8Ah, I see. $25 billion is a little more than two month's operating expenses for our military in Iraq.
If people get outraged at the cost of this bailout, they should be proportionally more outraged at our funding the Iraq conflict by borrowing money.- user500, on 07/23/2008, -1/+2and only 5% chance of that for you gamblers out there 1 in 20
- bjornski, on 07/23/2008, -0/+2Or the $400,000,000,000+ in interest paid on the debt yearly.
And growing.
- chaserm, on 07/23/2008, -2/+2It's going to cost a lot more than 25 billion. More like 1 trillion.
- sangresabia, on 07/23/2008, -1/+3So this means they get me to pay twice for the same ***** house? Wow, these guys are good!
- UltramegaOK, on 07/23/2008, -0/+2We continue to ***** away billions of dollars that we don't have.
Great job Dubya!
Mission Accomplished™- edstate, on 07/23/2008, -0/+1Not exactly W's doing. This is Greenspan's mess, but he certainly went along with it, and so did 90% of congress.
- chase001, on 07/23/2008, -2/+2Privatizing profits and socializing losses is a recipe for destroying the middle class and returning to having only the extremely rich and the extremely poor.
- edstate, on 07/23/2008, -0/+1GSAs... worst of both worlds.
- edstate, on 07/23/2008, -0/+1gsE... darn vowels.
- principle, on 07/23/2008, -0/+1AP -- "The measure hands the Treasury Department the power to extend the government-sponsored mortgage companies an unlimited line of credit and buy an unspecified amount of their stock, if necessary, to prop up Fannie Mae and Freddie Mac, two companies chartered by Congress. The two companies back or own $5 trillion in U.S. mortgages -- nearly half the nation's total."
The reason the Federal Reserve was created was to be the lender of last resort. However, Paulson is asking Congress for an unlimited amount of taxpayer’s moneys to bailout Fannie and Freddie, because the Fed is not willing to simply giveaway money. Unlike the taxpayers, they are not stupid.
Government should not bailout banks that gone bankrupt do to their own greed. The Fed should do its job and pickup the tab for its member banks. And if the Fed fails… we will be free of our money masters. Meanwhile, the Government should issue US Dollars and use them to rebuild America.
If the taxpayers bailout the banks, then who will bailout the taxpayers? The taxpayers are broke! Instead of an outright giveaway of trillions of dollars to failed banks, the taxpayers should nationalize them, while letting the equity and debt holders to lose all their moneys. That is what capitalism is all about. - principle, on 07/23/2008, -0/+2The bankers, who ripped people off by extracting gigantic profits out of the housing/derivatives swindle, are now demanding that the taxpayers pay for their losses so that they do not go out of business. The real difficulty is that this problem is so huge, with outstanding positions in the derivates market being over $500T. That even after they bankrupt the Federal Government, we the people will have to pay their debt for decades to come. So say your goodbyes to Uncle Sam, and say hello to the North American Union, a wholly owned subsidiary of the Federal Reserve Bank.
- kemp34, on 07/23/2008, -1/+1It will cost far more than that, if it goes through.
The Digg Toolbar for Firefox lets you Digg, submit content, and keep track of Digg even when you're not on the Digg site. Download the official 
© Digg Inc. 2008 —
Content posted by