Unsatisfied with a trillion-dollar stimulus boondoggle... not content with taking over the health care industry... unhappy with "Cash-for-Clunkers" and nationalizing the auto industry and pillorying free enterprise and attacking the energy industry and... [Cleansing breath]
..."fixing the financial system". That is, the very same men who protected the Fannie Mae crooks from a GOP crackdown, Chris Dodd and Barney Frank, cooked up yet another circle of stupidity by regulating the banking industry, Soviet-style.
And, like the rest of their disastrous programs, it too has failed.
Two weeks ago, the FHFA, using Moody's assumptions and modeling, said that a worst case scenario for Fannie and Freddie could result in total costs to taxpayers of $363 billion, an incremental $220 billion to the $148 billion already spent to keep the nationalized housing branch of the US government...Today, S&P has released a stunner which says that actually fixing the GSEs, and "resolving and relaunching" the bankrupt entities, would actually cost as much as $685 billion, or over another half a trillion in taxpayer costs. And as for the reason why the market is surging, and will be until the US annexes Zimbabwe, now that it is pricing in QE 7, S&P says that according to its estimates, the backlog of shadow inventory is 40 months! Tomorrow: another trillion dollar capital defficiency hole, uncovered somewhere in the ponzi that is the US economy, will cause QE 8 to be priced in. And so on.
This economy still teeters on the precipice of disaster thanks to the massive deficit spending of the 111th Congress.
And the GSEs -- Fannie and Freddie -- are still fiscal time-bombs, still ticking away, thanks to the idiotic social engineering policies of the Statist Left.
Image: Woody.
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