The Giant Sucking Sound

The Giant Sucking Sound

With sentiment growing that the banking system may survive after all, one may be tempted to look ahead to a day when ostensibly private entities will once again be politely asked to bear their losses without recourse to the public dole.

Not so fast.

According to today’s Washington Post, Fannie Mae posted a gigantic first quarter loss, blowing a $19 billion hole in their balance sheet that was immediately filled with an infusion from the Treasury.

Oh well. At least the administration’s plan “to wring $17 billion in savings” from next year’s $3.6 trillion federal budget will pay for most of today’s bailout.

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