Thursday, August 5, 2010
Obama's last ploy?
It is apparent that the Christmas Eve, 2009 lifting of the $400 billion limit on Government Sponsored Enterprise mortgage lenders Fannie May and Freddie Mac is about to bear some extremely strange fruit as the flailing and foundering Obama administration pulls out all the stops in trying to salvage a November electoral victory in what up to this point is looking like an unprecedented midterm electoral disaster of historic proportions. Rumors are swirling about that as of August 17, when a "much hyped" Treasury Department review of the GSEs is due to take place, some $800 billion in the one out of five US mortgages that were sloughed off into the illimitable black hole of the GSE balance sheets are presently underwater may be subject to a Main Street bailout with "portions" of vast debt unloaded onto the exponentially vast government debt pile. With few options left other than a second round of QE 2, a recalcitrant and expendable Congress, a nation adrift in the murky waters of profound economic uncertainly and all serious economic indicators pouting due south, the Summers, Geithner, Bernanke economic dream team is reaching for one of the last life lines in the increasingly turbulent cataclysm engulfing the administration and the nation, hoping to buy some enough time to postpone the inevitable and outpace that giant suckhole of economic disaster long enough to make it to midterm.
Posted by yardfarmer at 5:39 PM