Tuesday, July 22, 2008

More fiscal responsibility

And it's heading your way.

The 'news' that the Congressional Budget office is saying that the cost of the Macs bailout 'might' be $25bn is how it is being presented to the public. The good news, we are told, is that it might not cost anything, the bad news is that it might cost $100bn, the unspoken fact is that no one knows what it will cost, and Congress is about to pass out another blank check.

What might it really cost? Well, one thing congresscritters are looking at is whether to exempt payments to the Macs from the federal debt limit. The cushion is now about $310bn, so if they're going to exempt the Treasury payout for this, you can bet that amount is in sight. It could also be a lot more.

Signing over a blank check to Paulson is means the country's greatest ripoff will continue. The only question is how long the rest of the world will continue to buy our bad paper. Is the US too big to fail? We shall soon see.


Post a Comment

<< Home