Did I say wind down? No I meant expand! —The President comes up with a new scheme for bailing out underwater real estate investors and Wall Street firms stuck with “toxic assets.”
Makes sense. Everything has been dumped on the taxpayer already. Why not a few more billion dollars worth of real estate waste? That way investors and banks can move on. The taxpayers? Well, let’s be honest, they don’t care about the bill so long as it can be put off for another day, year, presidential administration.
Freddie and Fannie currently owe the taxpayer over $180 billion.
According to Reuters, the White House proposes transferring to Fannie and Freddie billions of dollars of underwater mortgages held by private lenders or investors — including some issued by subprime lenders and bundled into securities by Wall Street firms.
“The proposal would transfer potentially riskier loans held by private investors to the government-sponsored mortgage entities Fannie Mae and Freddie Mac,” the news wire said.