Taking a look over at Bloomberg.com we see Fannie Mae will be seeking 15.3 billion in aid after their 10th straight quarterly loss. This is coming shortly after the Treasury lifted a $200 billion dollar bail out limit on Christmas Eve and has decided to back them unlimited until 2012. Smaller rival to Fannie Mae, Freddie Mac saw a much smaller negative last quarter and will not be seeking additional aid from the government. Fannie Mae’s net worth is currently at around negative $15 Billion.
Both sides of the political spectrum have been arguing about how to fix the housing crisis. Should we continue to fund a company with 10 consecutive quarters of huge losses with tax payer money? Should the system be totally overhauled? Should Fannie Mae, Freddie Mac and other similar institutions be shut down and become a thing of the past? If so, what will replace them? How can we bring the same security of home loans and still have funds available for potential home buyers?
Tags: Fannie Mae, Freddie Mac, government bailout