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.
I wrote to a number of Republicans, hoping they focus on the FANNIE FREDDIE MESS as well.
ReplyDeleteThey have so much to clean up, it is a huge task - and I hope we Conservatives have patience this time around with Our Majority in the HOUSE.
Dodd must be upset, after seeing so many Democratic Party Senators get a lucky break - he must realize he could have easily walked back into the Senate.
It was painful seeing REID's smug grimace of a smile, after he defeated Angle. He feels vindicated and this is a tragedy.
We simply cannot give these disastrous Democrats more chances like this, running more weak Candidates in serious races.
Never again, the Delaware Fiasco should be learned well - but so far, I see the fashion continues on, without a real review of reality.
TARP - not reported and not noticed...
ReplyDelete-snip-
Now it turns out, according to documents filed with federal regulators, the revamping left the car maker with another boost as it prepares to return to the stock market. It won't have to pay $45.4 billion in taxes on future profits.
The tax benefit stems from so-called tax-loss carry-forwards and other provisions, which allow companies to use losses in prior years and costs related to pensions and other expenses to shield profits from U.S. taxes for up to 20 years. In GM's case, the losses stem from years prior to when GM entered bankruptcy.
http://online.wsj.com/article/SB10001424052748704462704575590642149103202.html?mod=WSJ_business_LeadStoryCollection
I read the article in near disbelief. I wrote the author of the article and asked if it applied only to GM.
His response below:
thanks for your note. i heard it covers companies like AIG and Citi with big past losses along with other TARP recipients. I heard about it this week in context of reasons why investors may want to buy GM stock. --randy smith wsj
I wrote him back with one last question:
Can Congress be 'tarped and feathered'?