Frankly, I am disappointed to say the least, about the above headline, "Loan Giant Overstated the Size of Its Capital Base." Once again, the Government will have to clean up this fiasco. According to the authors, Gretchen Morgenson and Charles Duhigg, "The cost of the government's intervention could rise into tens of billions of dollars and will probably be among the most expensive rescues ever financed by taxpayers."
Yes, it's Fannie Mae and Freddie Mac! You might have been holding your breath!
This article is very reveting, and a must read for financial and real estate practitioners alike. Where do we go from here? If we continue down this slippery slope, I fear the worst. Please take tsome time to checkout the below link.
http://www.nytimes.com/2008/09/07/business/07fannie.html?hp
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