Taxpayers Finally Get the Fannie Mae/Freddie Mac Bill…$100 Billion

by Florida's #1 Mortgage Planner on July 22, 2008

That’s right, the Congressional Budget Office released the first “official” bill that taxpayers will likely have to pay for to bail out both Fannie Mae and Freddie Mac.  The obscurity of the press release is typical as the government tries to cover up the costs of their screw ups, but the bill could be as high as $100 billion, maybe even more.

“Conditions in the housing and financial markets could deteriorate more than already reflected on the GSEs’ balance sheets, and such continuing problems would increase the probability that this new authority would have to be used.”

That’s comforting, isn’t it.  I have said all along that taxpayers would suffer as a result of the government’s interventions and we are finally getting a glimpse at how much we will all have to cough up.  I hope you haven’t been paying off that mortgage as you are going to need every deduction you can get hold of, not just your mortgage deductions.

It also means that as taxes increase, the ability to make money through strategic equity management will be even easier in the future.

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