http://www.zerohedge.com/article/revised-fhfa-forecast-taxpayers-fund-363-billion-gse-losses-2013
Oh quit your bitchin
What's a half a trillion?
We're the richest country in the world aren't we?
Ben and Timmy said we were anyway
And they would never lie
They swore on their Wall Street code of honor that this is all sustainable.
Timmy will turn this into a profit just like he did with TARP, you watch and see.
The FHFA has just released it revised "draw" projections for the GSEs, i.e., money which US taxpayers will have to spend to keep the nationalized securitization monsters alive. The reality: after already receiving $148 billion from Tim Geithner's US Treasury, the FHFA now estimates that its downside case will result in additional $220 billion over the next 2 years, for a total of $363 billion through 2013. And since this is based on Moody's housing price forecasts, two things are certain: (i) the "upside" case of only $221 billion in cumulative draws can be heckled, and (ii) the final cost will likely be well north of half a trillion. Of course, by this point it will become clear that Fannie and Freddie have no idea whose mortgages they own (as they will discover post their subpoenaing of JPM and others), and the real cost will be potentially well in the trillions, and require a second full scale nationalization of what are already nationalized companies. Actually there is one more point: by 2013 the US will long be insolvent, the Fed will be monetizing everything (say in your best Tepper voice), and the NYSE and the Zimbabwe Stock Exchange will have merged in futile pursuit of synergies to generate $0.01 of revenue away from the 99.999% dark pool dominanted marketplace, and so what happens 3 years down the line is completely irrelevant.
From the FHFA:
