Why the Freddie Fannie mess can’t be bailed out
July 19th, 2008
Freddie and Fannie Mae are huge. Together they hold $5 Trillion of US mortgages which equals roughly 50% of the US mortgage market. If these bankers prove to be insolvent, the United States will have a crisis on its hands in the form of 1970-80s style stagflation. To bail out these two banks, the national debt would have to adjust from $10 Trillion to $15 Trillion. Read more…
