Posted under Economics
Congress is expected to vote this week on a housing measure that would give the Treasury Department authority to throw Fannie and Freddie a temporary lifeline.
Paulson said that Fannie and Freddie have issued $5 trillion in debt and mortgage backed securities. Of that amount more than $3 trillion is held by U.S. financial institutions and more than $1.5 trillion is held by foreign institutions, making the stabilization of the two companies essential to the global economy.
“Because of their size and scope, Fannie and Freddie’s stability is critical to financial market stability,” Paulson told an audience at the New York Public Library. “Investors in our nation and around the world need to know that we understand how important these institutions are to our capital markets broadly and to the U.S. economy.”
Investing shouldn’t be risky, after all, and Fannie and Freddie are “too big to fail”.
Guess who’ll be picking up the tab, the same people who always pick it up: American taxpayers – with middle America, small business owners, and large families (as always) being hit the hardest. Francis once called foreign outsourcing the economic equivalent of ethnic cleansing. This is no different folks.
$25 billion… How much more can those who work for a living bear?