Things aren’t going well for Fannie Mae and Freddie Mac. First, the Federal Housing Finance Agency told them to delist from NYSE, and now, the real price tag of fixing the agencies is coming to light.
In an interview below, Anthony Sanders, a professor of real estate finance at George Mason University, who was called to testify before the House Financial Services Committee, says we should be “very concerned” about Fannie and Freddie, which have become a “huge problem” for a nation with ballooning debt.
How big? Fannie and Freddie guarantee almost $6 trillion in mortgages, and the potential cost of fixing them will be the largest US bailout ever, potentially up to $1 trillion.
Of course, back in March Tim Geithner essentially said he was “on it,” but, according to this interview, nothing’s been done.
The interview came to our attention via The Daily Bail.
The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on the link above.