The Fannie-Freddie Problem is Not as Severe as the Headlines would Suggest
October 21, 2010 at 14:06 PM EDT
Page 10 of the FHFA report, gives forward expected losses under three scenarios. The third is really awful–it assumes a further reduction in house prices by 1/4, which would be a lot. But under the other two scenarios, the net cost to taxpayers (draws less dividends owed to Treasurt) would be $6 to [...]
