No bailout for Fannie and Freddie!

Quote from crgarcia:

Paulson said it clearly.

Of course, the gov't backs the mortgage debt.
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You need a class in reading comprehension.
No where in Paulson's statement does he use the word "bail-out".

Read it again, my friend.
 
Quote from Mup:

They'll proabaly change their tune on Monday....
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Yep.
And according to banking analysts at Fox-Pitt Kelton ( Howard Shapiro ) Fannie and Freddie would have to post pre-tax losses and writedowns of about $77 BILLION before the U.S. would be compelled to start a rescue.

Fannie Mae would need to lose $40 billion ``immediately'' and Freddie Mac $37 billion to be considered insolvent, New York- based Fox-Pitt analyst Howard Shapiro said in a report this week. For Fannie Mae, house prices would need to decline 40 percent nationally and delinquency rates would need to rise as much as 10-fold to 12 percent on loans from 2006 and 2007 to reach critical capital levels, Shapiro said.

``We believe this is very unlikely,'' Shapiro said.

NOTE: Current losses on the books = $11 BILLION.
 
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