Tuesday, July 22, 2008

$$$$$$$$$$$$$$$$$$$$$$$$$$$

The cost of the Fannie Freddie Bailout?

$25 BILLION OF TAXPAYERS' MONEY.

5 comments:

Anonymous said...

Nice headline for scariness, but also note:
The budget office said there was a better than even chance that the rescue package would not be needed before the end of 2009 and would not cost taxpayers any money.

matt s. said...

$25B is a lowball number.

If CBO estimate is accurate then why don't they (congress) just give Paulson a $25B line of credit, instead of a big blank check?

sebastian said...

anonymous...do you believe the budget office, or for that matter, anybody in the federal government?

agree w/matt s that this is a lowball number...it's what the fed gov is willing to admit to now so that when the number creeps up in the next year (by end of 2009) the public is "used to" the idea of big bailout

it's the idea of creep-up acceptance

matt s. said...

The ol' bait'n'switch happens in the blink of an eye...

"[Barney Frank] said lawmakers may also raise the federal debt limit, which currently sits at $9.8 trillion, to $10.6 trillion as part of the legislation, Frank said.

"I believe it will be raised in this bill," Frank said."

http://tinyurl.com/6xz936
( bloomberg.com )


BOOM!!

Montpellier said...

Hooie...well, according to the number being tossed around this AM in the 'compromise' package - it looks like the bailout could grow to be $800 Billion.

I'm so thrilled to be bailing out RE specu-vestors with my tax dollars.

On the other hand, this is just the money needed to cover the previous stupidity - it's not going to allow more insane lending going forward. I just love the way rates are spiking and standards are tightening...bailout or not.

Prices will continue to tumble, as will transaction volumes.