Jul 10
Financial news outlet CNBC was reporting early Thursday that
Freddie Mac and Fannie Mae, the two
corporations around which much of housing recovery has been structured,
may be technically insolvent.
The claim came from William Poole, former president
of the St. Louis Federal Reserve. Poole told Bloomberg News that Congress
should recognize that the two are technically insolvent
and the odds are that the U.S. may have to bail them out. Others
disagreed, saying that there would have to be sudden losses of $40
billion between the two to trigger insolvency.