Fannie and Freddie Fleece the Taxpayers

It's bad enough the US government uses taxpayer dollars to subsidize affirmative action mortgage lending practices, but now that the whole insane system is crashing all around us, we're being soaked again to prop up this monstrosity:

Relying in part on last month’s housing bill allowing the Federal Housing Authority to make some $300 billion available for refinancing existing home mortgages, Fannie and Freddie say they will attempt to raise additional capital privately and to take steps to slow loan defaults and home foreclosures.

But in an environment where it is now clear that the two companies are backed by the full faith and credit of the US government, the potential liabilities of taxpayers will continue to balloon. Although Fannie claims to have tightened requirements for liar loans, it will keep buying them until year’s end. Stay tuned for more bad news.

Oh, we'll be tuned in, all right. Seems like we have very little choice.