This Chart Provides More Reason to Abandon the GSEs

Still think using government-sponsored enterprises (GSEs) to backstop the mortgage market is a good idea? Here's a chart that might convince you otherwise. Since 1970, Fannie Mae has posted a cumulative loss of $72.4 billion. That's the sum of all the profits and losses of the firm in the last 30 years. To be fair, it might not be quite this bad, as it doesn't appear to adjust for inflation. But considering that the cumulative up through 1985 was only a profit of about $15 billion, Fannie should still end up a net loser. Of course, its losses continue this year. Here's the chart, provided by Brendan Moynihan at Bloomberg:

loser fannie 2010-08.PNG

Read the full story at Bloomberg.

Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.

The Best 71-Second Animation You'll Watch Today

A rock monster tries to save a village from destruction.

Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register.

blog comments powered by Disqus

Video

The Best 71-Second Animation You'll Watch Today

A rock monster tries to save a village from destruction.

Video

The Case for Napping at Work

Most Americans don't get enough sleep. More and more employers are trying to help address that.

Video

A Four-Dimensional Tour of Boston

In this groundbreaking video, time moves at multiple speeds within a single frame.

Video

Who Made Pop Music So Repetitive? You Did.

If pop music is too homogenous, that's because listeners want it that way.

Video

Stunning GoPro Footage of a Wildfire

In the field with America’s elite Native American firefighting crew

More in Business

Just In