Taxpayers could be on the hook for $1 trillion to bail out Fannie and Freddie ..

Read more of the Fortune magazine story here.

It strikes me as odd that these two failing enterprises are being given more and more rope with which to hang themselves or maybe the taxpayers as it will likely turn out. For some perspective $1 trillion amounts to about $3,333 for every man, woman and child in the United States of America or about $13,333 for every family of four. And for this price what do we expect to get in return? Why a nationalized home loan industry of course.

It seems former St. Louis Federal Reserve president William Poole sees it much the same way I do. "Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer,” Poole told Bloomberg. Go forth and buy more worthless paper Fannie and Freddie the taxpayers will foot the bill!

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