AMERICA TIMES

Fannie Mae and Freddie Mac Helped in the 2008 Economic Meltdown

Posted in Economy by americatimes on May 21, 2010

Fannie & Freddie: Twin Titans of Financial Failure

“Reform” Bill Overlooks Them

* Market Movers: Fannie Mae and Freddie Mac both played a major role in the housing boom that preceded the economic meltdown of 2008, controlling as much as half of the nation’s residential mortgage market. And that role has grown: Last year, these two government-sponsored enterprises (GSEs) financed or backed about 70 percent of single-family mortgage loans. They hold about $5 trillion in their investment portfolios…

* Taxpayers Foot the Bill: Fannie and Freddie are losing money fast, and their losses are being covered by taxpayers—the same taxpayers whom lawmakers say they want to protect from footing the bill for future bailouts.

Read the rest
http://www.heritage.org/Research/Factsheets/Fannie-and-Freddie-Twin-Titans-of-Financial-Failure
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