U.S mortgage giants Fannie Mae and freddie Mac look like they are on the verge of collapse as their share price plummets, if they are taken over by the U.S authorities it would add $6 trillion to their liabilites and double the U.S treasuries debt. Link


As there are some awful big numbers being bandied around these days I thought it may be helpful to get this into some sort of perspective. U.S GDP in 2007 was nearly $14 trillion according to the IMF and the World Bank link with a population of around 300,000,000. If the loses from Fannie May and Freddie mac are socialised and amount to $1 trillion which is Peter Schiff's worst estimate then that would amount to $3333 plus interest (rising)  per man, woman and child in the U.S. Say only half the population are working then that's immediately doubled, a horrifying burden for an average worker to take on (though perhaps not totally unmanageable) when inflation is rising and homes are more expensive than ever.

Coming to a country near you, soon.


Edit: If anybody hasn't done so already read this short article from the Telegraph that covers the collapse of the U.S mortgage bank IndyMac.

Yeah so same old solution-turn on the $ printing presses to churn out paper I.O.Us.
Make up figures on a computer screen look I can do it now Im lending you
£1,000,000,000,000,000,000,000,000,000,000,000.! SEND:PAYBACK date:NEVER IN A LIFETIME.
Cheers!
Phew!
Trubble is holders of REAL $s that is where each actual $ has been "earned"
by sweat,collateral(that means Something was exchanged for it-labour/service/product)will see them get swamped by all this "hot air"currency issue.
WE have Govts where the govt virtually pays for and runs the economy
DDR,USSR for example.
They were not greatly satisfactory.
Footsie up 100 a today till the next drop.
This is eqivalent of winning £5000 at roulette one day after having lost
£50,000 the previous!