July 22, 2008

Is it the Economy or the Mortgage Crisis?

Posted by Deborah Kay Corey at 10:47 AM

It looks like saving Freddie Mac and Fannie Mae could cost lots and lots of money...fabulous.

NEW YORK (CNNMoney.com) -- The Congressional Budget Office on Tuesday estimated that a government plan to stabilize mortgage giants Fannie Mae and Freddie Mac could cost government coffers an average of $25 billion.

The CBO said it thinks there is probably a better than 50% chance that the Treasury would not need to step in. In addition, it said there is nearly a 5% chance that Freddie and Fannie's losses would cost the government $100 billion.

Wow, that's hot.

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