Budget Fun with Fannie and Freddie

Remember when your liberal friends used to writhe on the floor in a foaming rage? They were outraged because the Iraq War never got into the federal budget, but got slipped in through the back door with "supplemental appropriations."  Now there's a new game in town. Advanced conservatives are going to class to learn how to throw themselves on the floor about the losses at the government's mortgage giants, Fannie and Freddie: $400 billion and counting. Now that these GSEs are flat broke, why doesn't the president add the $5 trillion in Fannie/Freddie mortgage-backed debt in the National Debt, they ask?Yesterday, the president published the federal budget for the fiscal year 2011, starting October 1. In that budget, the feds will account for the bailout of Fannie and Freddie. But the cost will not appear in the headline number of $3.8 trillion in spending. Instead, Obama's guys will sneak it into the outlays for the recently concluded FY 2009.The only place you will be...(Read Full Article)