Raymond Richman - Jesse Richman - Howard Richman
Richmans' Trade and Taxes Blog
CBO supports our estimate that Fannie & Freddie will cost hundreds of billions more
In a May 1 American Thinker commentary (House Republican Budget would Benefit the Poor) we lauded Paul Ryan's budget plan for proposing to end the hemorrhaging of government money to Fanny Mae and Freddie Mac. We wrote:
Our estimate of hundreds of billions of dollars more is probably in the right ball park according to a CBO study. CBS News reports (True Cost of Fannie, Freddie Bailouts: $317 Billion, CBO Says):
In other words, the CBO is estimating that the bailout of Fannie and Freddie will cost the federal government $317 billion more. The Obama administration thinks that these guarantees will cost the government $130 billion more. In our April 14 commentary in the American Thinker (House Prices in Free Fall), we put these guarantees of Fannie and Freddie and the other foolish measures to keep house prices high into perspective. We wrote:
We are still ahead of our time these days, but not by much. We predicted that additional hundreds of billions will be spent on Fannie and Freddie on May 1; CBO made a similar prediction on June 2.
Comment by Ebano, 6/11/2011:
You've forgot to mention that all the predictions so far have been wrong. FHFA draw requests projections *Freddie (2H 2010): :
I also remind you that Freddie not only didn't request any draw to Treasury in the 1Q, but injected $1.6 billion to the taxpayer because it paid $1.6 billion usurer 10% dividend to Treasury.
Response to this comment by Howard Richman, 6/11/2011:
Response to this comment by Ebano, 6/12/2011:
Journal of Economic Literature:
Atlantic Economic Journal: