Creighton economist on Fannie Mae/Freddie Mac Bailout

While President Bush reassures all Americans that the current economic situation is difficult but not impossible to work through, Congress will likely be moving on a rescue plan for Fannie Mae and Freddie Mac.  Creighton University Economist Dr. Ernie Goss says extra care must be taken regarding this bail out otherwise taxpayers will be left to foot the bill.  Goss believes that the two financial institutions should be left alone.  He says all of a sudden, the federal government owns two of the largest lending institutions on the face of the earth to the tune of five-point-three trillion dollars in mortgage loans.  He says that could put taxpayers out there on a limb. Goss adds that we are talking about socializing the costs and privatizing the benefits.  While Nebraskans have not been hit as hard regarding the mortgage crisis, problems will likely continue through the summer months.  Congress is expected to vote on a proposal later this week to bail out Fannie Mae and Freddie Mac.