Are Fannie and Freddie in danger?

[moh malekpour]

http://mortgage.freedomblogging.com/2008/05/08/are-fannie-and-freddie-in-danger/

On the heels of Fannie Mae’s $2.2 billion loss reported Tuesday, the New York Times published a story questioning its solvency and that of its little sibling Freddie Mac. I recommend the read, and here are some key points from it:

Fannie and Freddie handled more than 80 percent of all mortgages bought by investors in the first quarter of this year, more than double their market share in 2006.
They have a combined $83 billion in capital to offset $5 trillion in debt and other financial commitments.
They suffered more than $9 billion in mortgage-related losses last year, “and analysts expect those losses to grow this year.”
I think you get the point. If either company fails, taxpayers could be looking at a steep bill, and the mortgage market would lose its only lubricant, the Times reports. Scary thought

 

[Terrel L. Shields]

Trust me the Fed will run the printing presses day and night 7 days a week before it happens...not that it won't hurt the economy bad anyway.

 

[Big ole Boy]

digital money on its way ........

... maybe I should build that water distiller to run off firewood if necessary .....