Reply #21: Not to mention that this could sink the economy way below sea level.

[dixiegrrrrl]

Remember that Fannie and Freddie took these toxic Mortgage Bonds in exchange for money they gave to the banks,and the bonds had been sold all over the world.
So now the bond holders are looking inside the Trusts and finding they are essentially worthless, since the mortgage notes were not also IN the trusts at the time ( within 90 days) the trust was established.
Which makes the trust liable for billions in taxes, not to mention liable for investors money.

Meanwhile, the banks are not getting the money for the foreclosed homes if people are shy about buying clouded titles.
And people like me cannot sell our home if the title is questionable, tho we are keeping up with the mortgage just fine.
Did I mention the mountains of derivatives in mortgage bonds?

EVERYBODY is getting screwed in this mess.