Fannie Mae and Freddie Mac are the big news today. Over this weekend they will, in effect, get nationalized and in the end the U.S. taxpayer will take responsibility for their losses.
China, Russia, Pimco and others who own F&F issued mortgage backed securities will not have to bear losses.
Current owners of preferred F&F stock will not have to bear losses either. Most of them are smaller U.S. banks and if these stocks would have been wiped out, many of them would have failed.
Once again (remember the S&L bailout of the Bush 1 administration??), every taxpayer in the U.S. now is expected to take a sucker punch to the gut in terms of higher taxes to protect large private financial institutions from their own stupidity.
There will be a point where We the People will have to scream "Enough!" at those people in government who consider us an endless stream for their revenue, and compel them to understand that we have a finite upper limit of tolerance for their behavior.