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So, if it were discovered that the true cost of the Fannie/Freddie bailout were more than twice the amount Obama administration claimed....

Would you be surprised to find out that Obamanomics has failed to account for ALL of the details?

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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
 
grlygrlz2

Asked by grlygrlz2 at 12:41 PM on Jun. 6, 2011 in Politics & Current Events

Level 39 (106,530 Credits)
Answers (9)
  • I think they were deliberately deceptive AND I think it is CRAP. Can we shut them down now?
    yourspecialkid

    Answer by yourspecialkid at 1:02 PM on Jun. 6, 2011

  • Not surprising...... Obamanomics has, in the past, proven it doesn't account for details, reality, or facts...
    grlygrlz2

    Comment by grlygrlz2 (original poster) at 1:08 PM on Jun. 6, 2011

  • No, I wouldn't be surprised at all. Our country is going to hell in a handbasket and you can thank Obama and his lies and promises of false hope for that.
    scout_mom

    Answer by scout_mom at 1:28 PM on Jun. 6, 2011

  • Not a bit surprised
    Carpy

    Answer by Carpy at 3:01 PM on Jun. 6, 2011

  • Obamanomics puts "new math" to shame!
    DSamuels

    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.

    QuinnMae

    Answer by QuinnMae at 5:28 PM on Jun. 6, 2011

  • Another excellent topic for debate/discussion, and nary a lib around!! LOL :o)
    LoriKeet

    Answer by LoriKeet at 6:19 PM on Jun. 6, 2011

  • IMO, some are just too busy filling up their Free-Pass Machine.... 2012 is just around the corner, dontya know!
    grlygrlz2

    Comment by grlygrlz2 (original poster) at 6:21 PM on Jun. 6, 2011

  • Say it ain't so!
    tasches

    Answer by tasches at 8:06 PM on Jun. 6, 2011

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