Market Currents

The total cost to rescue and then overhaul mortgage giants Fannie Mae (FNMA.OB) and Freddie Mac...

Thursday, November 4, 2010, 5:30 PM ET
The total cost to rescue and then overhaul mortgage giants Fannie Mae (FNMA.OB) and Freddie Mac (FMCC.OB) could reach $685B, according to estimates by Standard & Poor's. They've already cost taxpayers $134B, but the government could ultimately be forced to inject $280B because of the slow housing market.

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This news story has 12 comments:

herbert hoover Comments (2005)

Bennie can just print more

4 Nov 2010, 05:31 PM Reply Like

MarketGuy Comments (3983)

uhhmm, try 2-4 trillion there S&P.

4 Nov 2010, 05:34 PM Reply Like

bbro Comments (7902)

These studies drive me crazy...."COULD" is the operative word....
I wish they would print the various scenarios,,,,,

"The Federal Housing Finance Agency said that the taxpayer tab for the companies is on pace to reach $154 billion under the current home-price forecast. If the economy enters a double-dip recession and home prices fall more than 20%, the cost to taxpayers could reach $259 billion."

4 Nov 2010, 05:38 PM Reply Like

dw57 Comments (507)

can't forget foreclosure gate. if the banksters and others don't buy back their toxic junk it will cost us even more as more notes fail due to job losses.

4 Nov 2010, 05:51 PM Reply Like

cash Comments (422)

bbro - always the optimist. Hope you are right. It is near impossible to keep track of all the things that are going on. No idea who is responsible for what. Ben prints money, and loans it to treasury. When it is time Ben to collect the money owed, the treasury issues more debt to pay the bills, and Ben prints more money and grants the debt. Will the treasury ever 'make' money (by cutting spending or raising taxes) to start 'really' paying it off? You can hope, but common sense dictates that this is doomed to fail

4 Nov 2010, 05:59 PM Reply Like

HiSpeed Comments (1062)

Bennie won't have any CHOICE but to print more $$ and buy more worthless treasuries...

...and China will continue to buy less and less US debt.

4 Nov 2010, 06:10 PM Reply Like

mdmrjsds Comments (502)

Actually, I think this is partly a message to the Chinese (and the other parties that manipulate their currencies by buying US Treasuries). They see that their profit will be taken by the US through debasement (a non-tariff tariff).

If the Chinese want to continue to peg the renminbi they have no choice but to continue to buy US Treasuries. They've tried being clever by buying other sovereign debt, and purchasing commodities and productive assets. But in the end that is just making someone else buy US Treasuries. And those someone elses have no intention of taking the fall for the Chinese.

So this is telling the Chinese, revalue your currency, or we'll make sure you continue to pay for our consumption.

4 Nov 2010, 07:09 PM Reply Like

Duude Comments (3280)

"but the government could ultimately be forced to inject $280B..."

'Ultimately' implies a final amount can be calculated. Sorry! We can't use any words or terms like, 'ultimate' or 'total cost' till they shut 'em down for good.

4 Nov 2010, 06:14 PM Reply Like