[quote]And where, pray tell, do you think Frannie and Freddie will get the money to pay the principal back, plus 10% interest? They are bleeding every month![/quote]

They are not bleeding. They are cash flow positive. Fannie in particular could pay back every penny they borrowed tomorrow, with interest, if only they stopped worrying about mark-to-market net worth. They have $260 billion in cash and securities on hand.