The news about Fannie Mae and Freddie Mac is not good. The entities were poorly run, and as the glut of foreclosures caused the risk of default by Fannie Mae and Freddie Mac to rattle the markets, the government stepped in. Now, as foreclosures have continued, the Congressional Budget Office estimates that the total cost to the taxpayers could reach $389 billion.
It is a staggering amount of money. Where did it go, and what has been done to make sure that this disaster does not happen again?