This week, the House and the Senate will vote whether or not to commit taxpayer money to save Fannie Mae and Freddie Mac. So, who are these people – and why do they need our money?
Fan and Fred (as I like to call ’em) are “government sponsored enterprises” which means they receive support from the Federal Government, but are privately owned. They were created (Fannie came first, Freddie later) by Congress (as part of Roosevelt’s New Deal) to help more Americans buy homes. And, both are among the largest corporations in the world.
Ok, so why should you care? Enter financial disaster. As taxpayers, you and I will “take one for the team” and help the Government bail them out, if this what Congress decides to do. And we’re not talking a few million dollars worth of debt…more like hundreds of billions of dollars in outstanding debts. This is why you officially care. (and why my hair hurts just thinking about this)
Read this editorial and also this one if you’d like to hear more from people who are way more educated on this subject than little ole’ me.
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