At the end of 2007: Fannie and Freddie had a combined capital of $71 billion. Not bad.

But since then, the two have lost $226 billion in capital. Fannie Mae lost $126 billion and her counterpart getting $90 billion in the hole. That prompted the Treasury Department to funnel $148 billion, so far, into the behemoths.

So where did Fannie and Freddie lose all their capital? Single-family home guaranteed loans!