Financial Times FT.com

Guarantees for America’s guarantors

By Clive Crook

Published: July 13 2008 18:37 | Last updated: July 13 2008 18:37

Cummings illustration

US taxpayers are about to find out what their long-standing and (strictly speaking) non-existent guarantee of Fannie Mae and Freddie Mac will cost them. One way to think of it is this: take the US national debt of roughly $9,000bn and add $5,000bn. Not bad for an obligation still officially denied.

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