Tom Chechatka

April 15 – Financial Times (Aline van Duyn): “The US government’s need to provide financial backing to the state-sponsored mortgage financiers that dominate the US housing market could pose a risk to the country’s triple-A credit rating, Standard & Poor’s, the credit rating agency, said… In the event of a deep and prolonged US recession, S&P said the potential costs of propping up government-sponsored enterprises like Fannie Mae and Freddie Mac, which have implicit government backing, could cost the US government up to 10% of GDP. The costs of supporting broker-dealers like Bear Stearns in a dire economic situation would be much lower, at below 3% of GDP, S&P said. ‘The size of GSEs, coupled with their current level of common equity, could create a material fiscal burden to the government that would lead to downward pressure on its rating,’ the S&P report said…”

What ever would the People of the United States do without such “sound” financial advice coming from the mouthpiece of Europe’s deranged aristocracy? Why it would only cost 3% of GDP to support the friends of nation-wrecking oligarchs doing business here in the colonies as broker-dealers! One can only imagine how much more misery can be perpetrated at such a savings!