http://afp.google.com/article/ALeqM5...Z0YJp2YqEG1stw
Meanwhile Peter Schiff at Euro Pacific Capital said the two giants are likely to need government bailouts in view of the "dubious quality of their mortgage portfolios."
"Together both firms have less than 90 billion dollars in capital reserves to ensure losses on more than five trillion dollars in mortgage debt," he said.
"Could anyone reasonably believe that a two percent reserve fund can cover all the losses that are likely to be seen? ... Clearly, Fannie and Freddie would have no ability to survive without a government bailout. This means that taxpayers will be on the hook for hundreds of billions of losses, perhaps even more than one trillion."