09 Apr Fannie Mae Should Hire Bernie Madoff
Just so we’re all clear, I am not condoning questionable accounting in corporate America. In fact, I am super opposed to it. Okay? But I do want to make something very clear – Enron, Worldcom, Lehman Brothers, and Bernie Madoff combined have not cooked the books as badly as your government is doing – right now! I am referring to Treasury’s refusal to add the liabilities of Fannie Mae and Freddie Mac to the balance sheet of the United States of America. There is not one single serious person who does not know beyond any shadow of any doubt that the entire debt of these behemoth perversions (over $6 trillion) belongs to us taxpayers. Yet Uncle Sam refuses to add the debt to its books, and in fact, will not even allow the $300 billion it costs to insure the agency debt against default to be properly accounted for. To add the actual debt would tell the credit markets – “we are covering this”, something the credit markets already know without any ambiguity. However, it would also say to the taxpayers – “can you believe what we have done to you?”, and that is something they are not going to let happen. So, when both politics and economic convenience make honesty and transparency impossible, the best thing to do is utterly put to shame what all of the top 10 accounting scandals put together did. It is truly sickening.