Folks at the OMB have secretly realized the extraordinary damage that the takeover of Fannie and Freddie are about to do to the finances of the United States government.
Note the political wiggle room left wide open in that last quote. The OMB will get its chance to "reevaluate their budgetary status" before you know it.
You can't have your cake and eat it too. You can't announce in loco parentis control of a prodigal son without having to answer to his creditors. You can't take over two out-of-control mortgage pool issuers without assuming responsibility for the debts they've incurred.
Welcome to the Sovereignty Crunch.
On Tuesday, two days after the takeover, officials at the Congressional Budget Office announced that the deal had bound the government so tightly to the firms that their business operations, assets and liabilities should be included in the government's balance sheets.
Yesterday, Office of Management and Budget director Jim Nussle said he had decided differently, but may "reevaluate their budgetary status in the future, should conditions change."
Note the political wiggle room left wide open in that last quote. The OMB will get its chance to "reevaluate their budgetary status" before you know it.
You can't have your cake and eat it too. You can't announce in loco parentis control of a prodigal son without having to answer to his creditors. You can't take over two out-of-control mortgage pool issuers without assuming responsibility for the debts they've incurred.
Welcome to the Sovereignty Crunch.
