From AOL FINANCE:
It’s been said that laws are like sausages — it’s best not to see them being made. If that’s true, then you might want to avert your eyes when Timothy Geithner’s Treasury Department on Tuesday hosts the first public forum on reforming how mortgages are financed in the U.S.
If the long, messy, politicized slogs of health care reform and financial regulatory reform were the equivalents of bologna and hot dogs, fixing government-controlled Fannie Mae and Freddie Mac — guarantors of more than 70% of mortgage-backed bonds last year — is probably going to wind up looking something like head cheese.
Fannie Mae and Freddie Mac have already blown through nearly $150 billion in taxpayer dollars to remain solvent. Freddie asked for another $1.5 billion a couple weeks ago after reporting its 12th-straight quarterly loss. The Treasury Department has promised unlimited aid, but it’s understandable if this gargantuan sinkhole of taxpayer losses has folks calling for an end to endless bailouts.
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