Should the taxpayer rescue Fannie and Freddie

One of the most talked about things in the global markets has to be Fannie Mae and Freddie Mac; these are the two most important companies in the world. Although these are two banks they do share one problem, not making a profit, instead they are making a loss. Well it seems as if the taxpayer might have to bail them out, but will this be a popular choice

Both banks are in a world of pain and most of the worlds media are not shy in letting us all know, some like ourselves have said that the U.S. Government are looking at a number of options, one that would involve them injecting cash into their books.

So if the Government was to step in and help bail out Fannie Mae and Freddie Mac, what kind of things would they be able to do. One suggesting is that the U.S. Treasury Department will offer them a form of guarantee to $1.5 trillion of their debt; however some sources have said that this could extend to $2.3 trillion.

Another popular idea is that the Treasury could offer a direct-investment for around $10 billion for each bank, according to CNN Money; this could be in the form of buying triple-A debt securities directly from their portfolios.

However this would carry a risk, as this would mean that the Government will be putting more mortgage risk on the back of taxpayers, this is an unpopular move and it would only benefit the share holders in the end.