In an oddly timed move, on Christmas Eve The Treasury announced what essentially amounts to a blank check for the potential bad debt of Fannie Mae and Freddie Mac. Prior, the Treasury had a $200 Billion (each) limit on bailing out the "insolvent" mortgage lenders. At the present time, the two, combined, have already drawn down a over $110 billion of the approved $400 billion.
Makes you wonder about the stability and equity of the $6 trillion dollars worth of loans on their books, doesn't it? If there was almost $300 billion still to go under their existing "credit-line" but The Treasury lifts all limits...on Christmas Eve no less...that scares me a little bit (and should scare you too)...as a taxpayer, homeowner and real estate agent...
