Sept. 11 (Bloomberg) -- The Bush administration is considering how to fold Fannie Mae and Freddie Mac's $5.2 trillion in debt into the federal budget, the White House budget office and the U.S. Treasury Department said. http://www.bloomberg.com/apps/news?pid=20601109&sid=aH_KkmVv0kfM&refer=home ============= Current national debt is about 10trillion, pretty mind boggling that they were able to increase the total outstanding debt of the usa by 50% in a single weekend But the funny part is that accounting rules I think would force them to put that 5.2 trillion in the deficit for this year. So the deficit for 2008 would be well over 5trillion
Hahahahahahahaha! Those dumb congressmen will next time think twice when they give a black check to the Treasury.
I dont think thats likely. MBI insures bonds(effectively what Treasury did) and it doesn't count as debt for them but rather as 'exposures'
Two simple but key items to consider: 1. How much is the yearly interest payment on that debt of 15 trillion? The interest (debt service) is paid out of the US Treasury, basically it is tax payers paying it. 2. Who collects that interest payment? Who is the main and direct beneficiary of all this regular and ever increasing windfall? As noted in another thread, it really is the ultimate business model. !