The real cost of the bailout
As if there were ever any doubt that the worst banks on the block were the two run by Barney Frank and Chris Dodd, CBO now confirms that rescuing Fannie and Freddie will cost taxpayers at least $389 billion.
Of course lots of the money spent on the twins indirectly goes to bailing out the other mega banks not officially owned by the government. The new figures simply acknowledge what we’ve known all along—the twins will get stuck with the losses not only on mortgages they own but also on mortgages they insured, many of which are held by the TARPed banks. Of course the rest those mortgages are owned by your pension fund, your local hospital, your old college’s endowment, and the local symphony orchestra, which is a silver lining of sorts, depending on whether the orchestra is any good.
Tags: Andrew Redleaf, CBO, Dodd/Frank, Fannie and Freddie, Richard Vigilante
