FLASH: FEDERAL RESERVE'S POOLE ADMITS FANNIE MAE AND FREDDIE MAC ARE INSOLVENT, MASSIVE TAXPAYER FINANCED BAILOUT LIKELY

Ho.

Ly.

Crap.

We saw it coming HP'ers, but then to see it come, that's another thing...

The US Taxpayer will in the end pick up the tab for the rampant mortgage fraud and housing speculation. Your income will be taken by the government to pay for the misdeeds of Angelo Mozilo, David Lereah, Michael Perry and Casey Serin. Your hard earned income will go toward bailing out failed housing gamblers and incompetent banks.

And that should piss you off something fierce.

Here's former Fed governor Poole, telling it like it is...

Fannie, Freddie insolvent, Poole tells Bloomberg

(Reuters) - Mortgage lenders Fannie Mae and Freddie Mac are "insolvent" and may need a U.S. government bailout, former St. Louis Federal Reserve President William Poole was quoted as saying in an interview with Bloomberg.

"Congress ought to recognize that these firms are insolvent, that it is allowing these firms to continue to exist as bastions of privilege, financed by the taxpayer," Poole was quoted as saying in an interview held on Wednesday.

Chances are increasing that the government may need to bail out the two mortgage companies, Poole was quoted as saying.

I'm back... I see toxic lender IndyMac is toast, laying off 1/2 their staff, and Fannie and Freddie are likely insolvent. So what else did I miss?

Ho-hum, another day, another corrupt housing-bubble-company meltdown. Or two. Or three.

Goodbye Indymac employees. Thanks for orchestrating one of the greatest financial frauds in American history. Thousands more of you lost your jobs today, but like Angelo Mozilo at Countrywide, your kingpin of fraud (aka "liar's loans"), CEO Michael Perry, still walks the earth a free man.

Hopefully not for much longer.

The Great Unwinding is here folks. Right on schedule.

See it live. Right before your eyes. Every day. For a long, long time to come.

Pretty simple question: When do the Feds raid Fannie Mae's (and their auditor's) offices and start arresting people?

Just asking.

I figure it's gotta be soon.

That'll be a fun day.

America just loves a good frog-march.