Sunday, February 23, 2014
Fannie Mae Profits Push Taxpayers into Black On Housing Bailout
Fannie Mae has announced that it will be paying back the U.S Treasury Department a total of 7.2 billion dollars. This will pay off the money which was given to them during the 2008 bailout. They are the first company to be able to pay everything back. However they will still be under government control until the government winds them down. Fannie Mae at one point was responsible for 60% of all home loans in the United States, this was the reason the government felt they needed to be bailed out. The slight rises in the housing market has allowed Fannie Mae to become profitable again and ending last year they netted a record $84 billion. This helped bring them back into the black. This hopefully is a good sign that the economy is improving and that companies are becoming able to repay their debts. Hopefully this will prompt other corporations who still owe money to start paying it off, which will help offset the enormous deficit.
http://www.brecorder.com/money-a-banking/198/1155994/
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Even if this dollar figure doesn't really affect the deficit by itself, it may help to open the eyes of other businesses who owe money. Americans are so quick to jump on the government and the president about paying back their deficit, but what they fail to see is the necessary efforts put forth to help stabilize other aspects of our economy. Without that 2008 bailout, many homeowners would have been in serious trouble. Maybe if other debts like this one could be paid off in a reasonable amount of time, we would not have so much national debt.
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