Thursday, July 17, 2008
What's all this talk about Fannie and Freddie (and who knows who else) getting bailed out and the U.S. taxpayer having to foot the bill?
Since when did the U.S. ever pay off old debt with anything other than new debt and why should anyone think that taxpayers would be involved with saving the GSEs?
Some say that the average American is "on the hook" for tens of thousands of dollars in U.S. debt, but does anyone really think that this debt is ever going to be paid off?
Just like the $150 billion stimulus, any Fannie and Freddie bailout will just get tacked on to the national debt and lawmakers will hope that things will return to "normal", which, in this case means continuing to rack up even more debt that we, as a nation, have no reasonable expectation of ever paying down.
At some point, the debt holders will balk and then there will be hell to pay.
The U.S. government is setting the worst of all possible examples for its citizenry by continuing to dig a deeper and deeper hole - no wonder things are such a mess.