Wednesday, July 08, 2009
CBO estimates that the cost to the taxpayers of the failure of the GSE�s, Fannie Mae and Freddie Mac, will be $384 B. That is 2.4 times larger than all the other TARP and non-TARP costs (shown here, and excluding the Fed) combined. Here�s the Budget Committee Republican staff�s Budget Bulletin:To be fair, the Fan/Fred die was cast many years ago, and there's bipartisan blame to share around. But I would hope someone in Bill O'Reilly's office digs that fact up and replays the Barney Frank interview, and then muses on having this same congressman helping to fix the current mess. Sorry I'll have to miss that -- someone tape it for me, please!CBO estimated that the federal government immediately absorbed a loss of $248 billion for the book of business the GSEs had in September 2008. To maintain an active mortgage market, the federal government is continuing to operate the GSEs, whose new commitments entered into after September 2008 would lose an estimated $136 billion over the 2009-2019 period according to CBO.