Going down like the Titanic ..

More bleak news on the potential fates of Fannie and Freddie this morning.

It sure was smart of Congress to require them to take as many crappy loans as they could find all in a scheme to temporarily increase home ownership. Soon every used car salesman in the lending business knew he could write any loan he wanted and there was someone out there dumb enough to buy it (because Congress gave them no choice). Now we pay for it all .. in the trillions!! Certainly makes this observer wonder how much better off we all might be without so many enterprises risking everything knowing that the taxpayers could come in and save the day if things turned sour.

Don't forget to check back to Dan's Deep Creek Blog for future updates.

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!

Don't forget to check back to Dan's Deep Creek Blog for future updates.