Fannie, Freddie could lose up to $1 trillion

Fannie Mae and Freddie Mac’s fiscal woes could spell big trouble for taxpayers, who are responsible for the roughly $145 billion in losses the two agencies have incurred on loans they backed, according to CNBC. If housing prices fall further, experts say those losses could grow rapidly — some estimate as high as $1 trillion. Robert Shiller, co-creator of the Case-Shiller Home Price Index, said that the burden on taxpayers has become significant. “Some of use who don’t even own homes are paying to support others and their home ownership,” Shiller said. [CNBC]