Fannie Mae Needs $7.8 Billion Because It Lost Its Fanny Betting On Derivatives

Fannie Mae Needs $7.8 Billion Because It Lost Its Fanny Betting On Derivatives

Like the irresponsible son who goes to his daddy asking for money to cover gambling losses so loan sharks don’t bust his kneecaps, Fannie Mae is begging taxpayers for $7.8 billion because it lost so much money last quarter on derivatives. The $5.1 billion loss in the third quarter dwarfs last year’s awful third quarter shortfall of $1.3 billion. [More]

Nobody Panic: Government Seizes Freddie Mac, Fannie Mae

Nobody Panic: Government Seizes Freddie Mac, Fannie Mae

Oh dear, all that talk about Freddie and Fannie being “adequately capitalized” was utter bullshit and the government has now announced plans to place the failed government sponsored enterprises into conservatorship. That means the fate of the housing market and the global economy rest squarely on the shoulders of U.S. taxpayers.