This puzzling practice of repeating past mistakes which contributed to the housing bubble and the current state of our economy must end
U.S. Senators Mike Crapo (R-Idaho), Saxby Chambliss (R-Georgia), John Thune (R-South Dakota), Tom Coburn (R-Oklahoma) and Johnny Isakson (R-Georgia) today called on Treasury Secretary Timothy Geithner to end the continued taxpayer bailouts of Fannie Mae and Freddie Mac by the current administration.
In the letter, the senators remind Secretary Geithner of the more than $148 billion that Fannie Mae and Freddie Mac have already cost the taxpayers. The recent news from these two entities of more quarterly losses means this figure will continue to rise, adding not only to our country's deficit, but also destroying any chance of rebuilding a stronger economic foundation.
"This puzzling practice of repeating past mistakes which contributed to the housing bubble and the current state of our economy must end. Real ideas for reform exist and must be considered immediately", the letter states. "Further, the persistent treatment of the issue of the government's role in the housing industry of this country as a political football has only exacerbated the economic volatility rampant in our capital markets. As we approach the two year mark since Fannie and Freddie were placed in conservatorship, and with concerns growing over our nation's record level debt, how much longer will this administration ignore the budgetary effects of continuing to extend taxpayer assistance to these GSEs by refusing to account for their expenditures in federal budget projections?"
This letter corresponds with the Treasury Department's conference on the future of Fannie and Freddie being held today.
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