SocraticGadfly: Can we send the bill to Alan Greenspan?

July 22, 2008

Can we send the bill to Alan Greenspan?

I’m talking about the bill of potentially $25 billion for the Fannie Mae/Freddie Mac bailout.

And, who says $25 mil will be enough?
CBO numbers assume Fannie Mae and Freddie Mac won't exceed the $85 billion in fair value losses on their balance sheets, agency officials told reporters in Washington today. The CBO said today it's taking into account an almost 5 percent chance credit losses may reach $100 billion.

Both Republicans and Democrats are uneasy about Treasury Secretary Henry Paulson’s plan, as a result.

Remember the S&L bailout of the 1980s? We heard the same story, at first, that the bailout costs wouldn’t be that bad.

Well, color me skeptical, if not highly skeptical, too.

No comments: