All trouble seems to surface together.
People seem to have forgotten about Fannie and Freddie.
The bailout of America’s failed housing finance giants is taking on Greek proportions. On Wednesday, Freddie Mac said it would tap the Treasury for another $10.6 billion after first-quarter losses. Together, Freddie and its cousin Fannie Mae have drawn $136.5 billion from Treasury’s unlimited equity line since they were seized in September 2008. The European and International Monetary Fund rescue package for Greece – one that was supposed to shock and awe international markets – comes in at the same kind of figure, around $139.7 billion.
The U.S. Treasury and Federal Reserve has spent $1.4 trillion to buy the mortgage-backed securities of both Freddie Mac and Fannie Mae
http://blogs.reuters.com/columns/2010/05/06/fannie-freddie-bailout-plays-like-greek-tragedy/
Overall the global scenario seems to be playing out like October 2008 when Lehman etc collapsed.
Saturday, May 8, 2010
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment