If anybody gives you an estimate (on how much is going to cost the government), it is way underblown.

It’s already hard enough trying to survive the market with the subprime implosion and the media scaring the crap out of everyone to stay away from real estate industry.

I also agree with earlier comments about the Democrats being remarkably silent when it comes to all that dough they rake in and have, particularly in relationship F.M./F.M.

Fannie and Freddie were created for one reason, to take the RISK out of Loan companies lending practices.

They buy loans, supposedly so money will be pumped back into the system faster, so it can be reloaned faster than the amount of time it takes for the loan to mature. Problem is that loan companies KEEP the loans from the higher earning (ie less risky) clients, while selling poor loans to Fannie and Freddie.

Its a government sponsered bail out for the system, which has been in place for YEARS… and the inherent structural problems are only now being seen due to the economic downturn, and lack of oversite on the loan industry from BOTH parties.

Whole thing is inerently flawed, just like Social Security.

Obviously trust in the market would fail, would the US dollar be able to ride through that?

Just wondering.

“If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose.” Fannie and Freddie’s lobbyists succeeded; Congress failed to act. They’ve stayed in business, grown, and profited mightily by showering money on lobbyists and favors on the Washington establishment. Now the bill has come due. But if a dime of taxpayer money ends up being directly invested, the management and the board should immediately be replaced, multimillion dollar salaries should be cut, and bonuses and other compensation should be eliminated. They should cease all lobbying activities and drop all payments to outside lobbyists. And taxpayers should be first in line for any repayments.

Amen! Why do any of the people in the C-suite of these two organizations have jobs?

I was alerted to the inherent corruption of Fannie and Freddie many years ago (sorry I don’t remember the context–maybe one of my economics professors). My opinion is that they should be completely disbanded and that there should be no less than triple-digit conviction and jailtime sentences for higher-ups. These organizations are kleptocracies that eventually end up benefitting both D’s and R’s, but promote big-governmentism most of all.

He should demand a 16 month timetable.

Texas Rainmaker on July 24, 2008 at 6:37 PM

HA! Well played, sir (or ma’am).

Lets see….. That makes 3.

McCain: Get rid of Fannie Mae and Freddie Mac

Be kind of like closing the barn door after the horse got out and is half way to the next county.

But if a dime of taxpayer money ends up being directly invested, the management and the board should immediately be replaced, multimillion dollar salaries should be cut, and bonuses and other compensation should be eliminated.

These guys are getting plenty of taxpayer dimes indirectly, which to me is the same thing.

Those steps he listed are fine, but he also needs to add in an orange jumpsuit frog-walk.