Would you be surprised to find out that Obamanomics has failed to account for ALL of the details?
In a report delivered to the House Budget Committee on June 2, the CBO said a “fair value” accounting of guaranteeing the two defunct mortgage companies – known as Government Sponsored Enterprises (GSEs) – was more than twice as high as the Office of Management and Budget had accounted for.
“Specifically, CBO treats the mortgages guaranteed each year by the two GSEs as new guarantee obligations of the federal government,” the CBO report said. “For those guarantees, CBO’s projections of budget outlays equal the estimated federal subsidies inherent in the commitments at the time they are made.”
“In contrast, the Administration’s Office of Management and Budget continues to treat Fannie Mae and Freddie Mac as nongovernmental entities for budgetary purposes, and thus outside the budget,” the report stated. “It records as outlays the amount of the net cash payments provided by the Treasury to the GSEs.”
The total of those cash payments is $130 billion, and is normally reported as the cost of the bailout of the GSEs to date. However, the CBO said that merely counting the cash payments, and not the cost of federal subsidies granted to the GSEs, obscures their real costs.
Essentially, the CBO is accounting for the cost of the federal government guaranteeing the loans bought and securitized by the GSEs.Answer Question
Answer by yourspecialkid at 1:02 PM on Jun. 6, 2011
Answer by scout_mom at 1:28 PM on Jun. 6, 2011
Answer by Carpy at 3:01 PM on Jun. 6, 2011
Answer by DSamuels at 5:15 PM on Jun. 6, 2011
To be honest, I think the only thing that would surprise me right now would be if we were to learn that they were completely forthcoming about all details and information. That would truly be shocking.
Answer by QuinnMae at 5:28 PM on Jun. 6, 2011
Answer by LoriKeet at 6:19 PM on Jun. 6, 2011
Answer by tasches at 8:06 PM on Jun. 6, 2011
Next question overall
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