Fannie Mae, Freddie `House of Cards' Prompts Takeover

Preface: This information started to leak out over last week and I am have been enraged for a few days now. I thought it might happen, and I maintained a healthy fear of it. I hate paying for other people's mistakes. I also despise expansion of government control and regulation.

If you aren't already aware Fannie and Freddie are going to be taken over by our increasingly overbearing big brother--the government. And, if it hasn't occurred to you yet, the write downs--aka losses due to defaults--will more than likely be capitalized into our national debt since Fannie and Freddie are quickly running out of assets. Awesome! Then I can pay for other people's poor decisions. I hope we go into a deep depression. Maybe people will then realize how messed up this country is. I am not worried anyway because I will survive and thrive. Besides, unemployment, starvation, riots and looting could be interesting.


Fannie Mae and Freddie Mac used accounting rules that created a ``house of cards'' as the housing market descended into its worst slump since the Great Depression.

Fannie counted $20.6 billion in so-called deferred tax credits toward its $47 billion of regulatory capital as of June 30, according to company disclosures. Freddie applied $18.4 billion in deferred-tax assets toward its $37.1 billion in regulatory capital in the second quarter.
Fannie and Freddie have posted four straight quarterly net losses totaling a combined $14.9 billion and have said they anticipate more. The tax credits don't have any value unless the companies are generating profit.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aYidZnvS7ykg&refer=home