What Fannie-Freddie Bailout Means to Taxpayers

On Sunday, the U.S. government seized control of Fannie Mae (FNM Quote) and Freddie Mac (FRE Quote), the two largest mortgage entities, in an attempt to stabilize the real estate market.

"We examined all options available, and determined that this comprehensive and complementary set of actions best meets our three objectives of market stability, mortgage availability and taxpayer protection," said Henry Paulson, the Treasury Secretary.

We spoke with real estate professor Mark Goldman, of San Diego State University, about what this means for the average taxpayer.

How much are tax payers going to have to cover in losses?

Even though taxpayers are exposed to anywhere from $50 to $500 billion [in potential liabilities], most estimates are [around] $100 billion, [and] the consequences to not helping could be significantly higher.

To continue reading this article, please visit MainStreet.com.