Countless amounts of times we have stated that Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE) have no business being public companies. These stocks continue to cost tax payers billions of dollars as they continue to lose money quarter after quarter.
Today Fannie Mae and Freddie Mac requested another $20 billion dollars combined in order to continue to function. This large financial request comes after Fannie Mae reported a huge loss this morning. How much money will these companies need to lose before the taxpayer becomes outraged.
Originally Fannie Mae and Freddie Mac were supposed to have a debt ceiling cap at $400 billion dollars between the two companies. However, on Christmas Eve 2009 the Congress lifted that debt cap while the jolly taxpayer was sipping eggnog.
What ever happened to the old market adage “cut the losers and keep the winners?” Someone should tell this to the American government as money continues to fly out of the window.
Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
