fannie-mae.thumbnail.gifWhat a surprise. (h/t Calculated Risk) Not. What I wrote July 23rd:

My estimate, from March, was that the eventual cost would be at least 500 billion. We’re on our way. Remember, as the housing market gets worse, so does Fannie and Freddie’s condition, and in any case, I would be horribly surprised if they hadn’t been understating losses already, both deliberately and because they really have no clue, being incompetently managed and audited.