To my shock, said Peter Orszag, the Federal Congressional Budget Office director said, “It is CBO’s view that the operations of Fannie Mae and Freddie Mac should be directly incorporated into the federal budget". Matching what I stated previously, "on a balance sheet type view, the US Government should put the new debt directly onto the government's books until all debt is paid off". On my blog tracker, I see someone in Washington has read my blog, maybe Peter got the idea from my blog....
Keep in mind, Freddie & Fannie have MORE than 6 trillion dollars of debt. The primary excuse for the move was the accounting was irregular. I suspect the irregular accounting once corrected may result in greater debt, just a guess.
Lehman Brothers is going down quick, down 30-40% in overnight trading. Now that the US government takes on 6 trillion, why not run with the debt spending as quick as possible before the world catches on that US is heading for bankrupcy. The US can take on 15 corporations each at 100 Billion, and the over-all Federal debt increases only by 10%. EDIT: 8:40 am 9/9/08, I just heard on CNBC state similar comment, Fed should buy corporations to save the US. NOTE: This will delay not save anything, there is no such thing as a free bailout.All kidding aside, I have emailed, posted, and discussed make sure your money is in safe your accounts. If you keep putting it off, don't. ACT TODAY.
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