Fannie Mae and Freddie Mac - The Proposed Bailout

Earlier today, Treasury Secretary Henry Paulson called upon Congress to pass the administration's plan to help troubled mortgage financiers Fannie Mae and Freddie Mac. The Congressional Budget Office says this could cost taxpayers upwards of $25 billion.

This has many people divided - on the one hand, it could help stabilize an already faltering economy. On the other hand, is it really the government's business to bail out these companies who, it can be argued, got themselves into this situation. When I was looking to get pre-approved for a mortgage a couple of years ago, I know that the number I could have had access to was far higher than I could have been realistically expected to pay - I could have bought the Bat-cave or something with what they were willing to give me. Now it's somehow shocking that all of these loans are being defaulted on.

Maybe Fannie Mae and Freddie Mac can apply for a loan to get out of their current predicament. At an adjustable rate, of course.