There goes the neighborhood

If you were remotely thinking of seeking economic refuge in another country, now would be a good time to do so.

Alarmed by the growing financial stress at the nation’s two largest mortgage finance companies, senior Bush administration officials are considering a plan to have the government take over one or both of the companies and place them in a conservatorship if their problems worsen, people briefed about the plan said on Thursday.

The companies, Fannie Mae and Freddie Mac, have been hit hard by the mortgage foreclosure crisis. Their shares are plummeting and their borrowing costs are rising as investors worry that the companies will suffer losses far larger than the $11 billion they have already lost in recent months. Now, as housing prices decline further and foreclosures grow, the markets are worried that Fannie and Freddie themselves may default on their debt.

Under a conservatorship, the shares of Fannie and Freddie would be worth little or nothing, and any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers.

Let me repeat that incase you missed it. "any losses on mortgages they own or guarantee — which could be staggering — would be paid by taxpayers." The money you and I earn daily, working for ourselves, to better our lives would be taxed even more to bail out 2 companies that we're so drunk with the need to make more and more money. Don't be surprised if it happens, and don't be surprised if General Motors, and many airline companies are next.

U.S. Weighs Takeover of Two Mortgage Giants