Fannie Mae reports $74.4bn loss in 2009; asks $15.3bn from Treasury
The nation's largest mortgage finance company Fannie Mae reported a total loss of $74.4 billion in 2009 as compared to $59.8 billion last year.
The fourth quarter results of Freddie Mac exhibited a total loss of $7.8 billion, thus, making the total losses for 2009 to be $21.6 billion.
The losses for Fannie Mae are expected to continue. The mortgage monolith told Reuters, "We expect to have a net worth deficit in future periods, and therefore will be required to obtain additional funding from Treasury."
In plain English, NOT bureaucratic mumbo jumbo, "net worth deficit" means losses. Fannie Mae and Freddie Mac are losing money now, and expects to continue losing money in the future. Fannie Mae and Freddie Mac expect to lose billions of dollars per year. The unspoken part of that report, is that they expect everyone who is NOT losing money, to give them more money so they can continue to lose billions of dollars per year for the foreseeable future.
Is this any way to run a business? Is this any way to run a country?
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