How much will the bailout of Freddie and Fannie cost the US taxpayer? Try $450 bln on for size.
Looks like this has gotten the attention of traders as the push the dollar lower across the board this afternoon.
15 Responses to “This one is making the rounds…”
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AUTOREFRESH 
the link must not be right or i am not getting the joke..
I don’t get it either, cheg
Not a joke…Freddie and Fannie are going to cost billions more than the government is forecasting
Jamie your link goes to quite another story..
Now it went to the right website http://www.ritholtz.com/blog/2010/01/gse-losses-448-billion/#more-49045
ok now thanks.
Well it woke a few of us up!
Almost the size of the greek deficit ?
Almost the size of the greek deficit ? I mean stock of debt ??
What is the safest currency in the world ? (and don’t tell me it is sterling..)
None, cheg … but if I have to choose it would be commodities-related currencies of AUD and CAD
That’s the problem. The perception is that there are no safe currencies…
Thing is, what is the currency denominating most of the huge debts around the world? In other words, what currency is going to be in demand to repay for the huge debt when pay time comes?
Good point. That is precisely why the dollar rallied during the deleveraging in 2008. Deflation makes debt more costy…better to pay it off quick…
IMO, the safest currency is the USD. Who knows if the Euro will even still exist 10 years from now. If Britain is helped in this down cycle by devaluing its currency, other European countries are going to want that option. The JPY debt situation and the country demographics are worse than the US. So, of the Big 3, it’s the US. And I think they’ve learned from past experiences. When the UK was weak 20 years ago and Soros was “breaking” the BoE, they raised rates to defend the currency. Mortgages went up, and that set off a spiral that hurt the economy even further. Clinton relied on the PC and internet boom to create a bubble to get America out of the Savings & Loan Crisis, which sent a couple of thousand bankers to jail. Obama seems to think that a GreenTech Revolution is going to do it. That remains to be seen, but America does have the sort of labor force mobility – to go with a culture that fosters innovation and entrepreneurs, and a market that has critical mass – to allow it to create a new industry. IMO, the only way out of this mess is jobs and growth- and for the business cycle to run its course.