Tuesday, Aug 26, 2008
this is starting to smell a little fishy now... what is the real truth?
cnn: Fannie and Freddie woes spread
The sharp decline in the value of preferred shares of the troubled mortgage finance firms could lead to billions of dollars more in bank writedowns.
Posted by mark @ 11:42 AM (266 views) Add Comment
1 Comment
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1. malct said...
The Real Cost of a Full Bailout
Daily Article by Don A. Rich | Posted on 8/22/2008
http://mises.org/story/3062
A recent study from the Congressional Budget Office (CBO) has zero credibility. It pegged likely taxpayer losses in the Fannie Mae and Freddie Mac bailouts at $25 billion. For those with a sense of history, it is worth remembering that the S&L bailout had a $160 billion price tag. The numbers diverge so far from reality as to be laugh-out-loud funny. Funny, that is, except that the CBO estimate demonstrates a willful disconnect with the actual consequences of federal government actions.
As demonstrated below, the real cost of the bailouts will easily exceed $1.3 trillion. In fact, the real cost is likely to range between $1.3 trillion to $1.6 trillion, and is not unlikely to reach $2.5 trillion.