Friday, July 25, 2008

Fannie and Freddie Bailout Cost Could Reach $100 Billion

TAP:

The Congressional Budget Office, which missed both the housing bubble and the stock bubble says the bailout of Fannie Mae and Freddie Mac will cost approximately $25 billion and that there is probably a better than 50 percent chance that the mortgage giants won't actually need to be bailed out.

My guess is that the price tag will be close to $100 billion. A lot of bad mortgage debt will show up in the next two years -- in many cases these mortgages are not even in trouble now, but they almost certainly will be in the future as homeowners owe far more than the value of their home. When it comes to meltdown from the bubble, we are still in the early innings.

1 comment:

  1. oh wow, Jason! You So Bad!!!

    Check THIS out!

    The funny thing is... it's the Demos in Congress who are pushing this bill.

    ReplyDelete