Fannie Mae Wants Another Bailout After $8.7 Billion Loss

Why is it that Fannie Mae is still operating? What business does the government have in ensuring Americans get home loans?

As Obama boasts today the economy is getting better, despite nearly half a million new jobless claims and a celebration of 240,000 new jobs--62,000 of which were created by McDonald's, we get more proof the economy isn't quite chugging along like they want us to believe. Obviously, more Americans are still getting foreclosed upon because they can no longer afford their homes with more unemployment, higher energy costs, and higher food costs.

Mortgage buyer Fannie Mae reported a loss of $8.7 billion for the January-March quarter, and asked for an additional $8.5 billion in federal aid.

The new request is more than three times the $2.6 billion in government aid it sought in the final three months of last year.

The loss was caused by declining home prices around the country, Fannie Mae said. It said prices declined on average 1.8 percent, leading more homeowners to default on loans that the mortgage giant had guaranteed.

Obviously, if home prices are declining, the market still hasn't recovered. As such, Fannie Mae wants another bailout.