Aid to Mortgage Giants May Exceed Forecasts

[Amerigo Vespucci]

Source: The Washington Post

The first of the Bush administration's major financial takeovers, the seizure of Fannie Mae and Freddie Mac, is poised to get more expensive and some analysts are warning it may ultimately cost more than the government has suggested.

Mounting troubles in the financial and housing markets have further undermined the health of the companies in the months since the government seized them in September, making it likely the Treasury will be required to pump billions of dollars into the mortgage-finance giants.

Though not a cent has been spent, some analysts are warning the tab could exceed the $200 billion that the government set aside for capital infusions into the two companies.

"Depending on what happens with housing, you could see scenarios where the $100 billion comes into the question," said Rajiv Setia, an analyst with Barclays Capital. He said McLean-based Freddie Mac may need $40 billion by the end of the year.

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2008/11/13/AR2008111303799.html?hpid=topnews

[MannyGoldstein]

1. No Shit?

Couldn't see that coming. Not at all.

[Phred42]

2. No Shit - When did they EVER give us the correct number initially?

for anything from unemployment to the US debt?

[truthisfreedom]

3. Actually, umm, guys, I'm going to need $40Billion by the end of the year. Seriously. Not going to

make it if I can't get $40Billion. So put me on the list. Me. $40 Big ones.

[Art_from_Ark]

4. By golly, I want MY $40 billion, too.

And I don't mean Zimbabwe dollars, either

[melm00se]

5. typical government program

I can't remember any government program that DIDN'T go over budget/forecast.