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True Cost of Fannie, Freddie Bailouts: $317 Billion, CBO Says

(CNSNews.com) – The Congressional Budget Office (CBO) says the real cost of the federal government guaranteeing the business of failed mortgage giants Fannie Mae and Freddie Mac is $317 billion -- not the $130 billion normally claimed by the Obama administration.

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.”

http://www.cnsnews.com/news/article/true-cost-fannie-freddie-bailouts-317-bi

Do the words holy crap come to mind or is that just me????

Answer Question
 
mrssundin

Asked by mrssundin at 3:34 PM on Jun. 6, 2011 in Politics & Current Events

Level 19 (6,722 Credits)
Answers (4)
  • Everything our government does related to budget and finance is smoke and mirrors.
    UpSheRises

    Answer by UpSheRises at 3:36 PM on Jun. 6, 2011

  • watch out upsherises if you disagree with the government at all on this site(cafemom)and try to smear them your wearing a tin foil hat by some on here. LOL...
    mrssundin

    Comment by mrssundin (original poster) at 3:49 PM on Jun. 6, 2011

  • What upsherises said. The transparency of this administration is nonexistent. This is more of the 'tell them one thing, do the thing, then there is nothing they (meaning us) can do about it once it is done when they find out how much we lied' syndrome. Kids do this. You tell them no, they do it anyway, and think there is nothing that can be done once a thing has been done. So, we are being governed by kids. That explains a lot.
    jesse123456

    Answer by jesse123456 at 5:42 PM on Jun. 6, 2011

  • Truthfully, it's probably more that that!


    And OP, I always have mine on... :o)  


    Isn't this cute?


     

    agentwanda

    Answer by agentwanda at 6:07 PM on Jun. 6, 2011

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