If only God would give me some clear sign

If only God would give me some clear sign! Like making a large deposit in my name at a Swiss bank.

Woody Allen

Ever since the US government took over the GSEs in September 2008 under Bush/Paulson, and the expansion of that policy under Obama/Geithner, the Government has injected ~$112 billion into these two entities. If Goodman is correct — and her guess is about as good as anyone’s — the budget deficit is about to get $336 billion larger.

To put that into context, from September 5, 2008 forward the US Government is likely to spend more money bailing out Fannie/Freddie than they have on the Iraq and Afghanistan Wars — combined.

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The Treasury’s Christmas Eve approval of multimillion dollar compensation agreements for the CEOs of Fannie Mae and Freddie Mac is getting flak from both sides of the aisle in Congress.

Barney Frank, the Massachusetts Democrat who chairs the House Financial Services Committee, on Wednesday said he thought the compensation agreements, which will allow the chief executives of both companies to take home payments of up to $6 million annually in cash, were “too high.”

The federal regulator for Fannie and Freddie approved the compensation packages in cash because the company stock is trading at just over $1. While some senior executives at the firms also stand to make multimillion salaries, the agreements capped pay for officers of the firm at $500,000.

Nick Timiraos wsj.com

Bank failures are caused by depositors who don't deposit enough money to cover losses due to mismanagement

Dan Quayle