The national debt is over $13 trillion dollars and Congress is grappling with reforming the financial regulatory system to prevent another meltdown. But surprise, the federal bailout to Fannie Mae and Freddie Mac continues. The cost of fixing both mortgage lenders will be at least $160 billion and is expect to rise to almost $1 trillion dollars, which would represent the largest bailout in U.S. history..
The financial reform legislation that is meandering through Congress leaves out reforming Fannie Mae and Freddie Mac, even though 80 percent is owned by U.S. taxpayers. The mortgage giants that guarantee three quarters of all U.S. home loans have been bailed out already to the tune of $145 billion. This surpasses the amount spent on American International Group Inc, General Motors or Citigroup, who are all repaying their debts.
Washington just doesn't get! Why all the debate over financial reform if you leave out the main culprit of the financial meltdown! Who is benefiting from the bailout of Fannie Mae and Freddie Mac? It sure isn't the taxpayers!
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