Taxpayers Bear Brunt of This Bailout

Since the creation of the mortgage-backed securities market in the 1970s, Fannie Mae(FNM Quote) and Freddie Mac(FRE Quote) have allowed homeowners to secure lower mortgage rates.

All the benefits from the past thirty plus years, however, will likely be washed away by the federal bailout of the two firms now on the table, which critics say will eventually leave taxpayers holding the bill.

It's difficult to say exactly how much homeowners have saved on lower mortgage rates from having Fannie and Freddie around. ...