Cleaning Fannie’s and Freddie’s Stables
Students of mythology and users of the English language have likely heard something decidedly unpleasant labeled as “the Augean stables.” The phrase originated in the myth where King Augeas housed 3,000 oxen and never bothered to get the building cleaned. After 30 years, the rancid structure finally got a cleanup when Hercules diverted the river Alpheus through its horrific odors and disorder.
The phrase came to mind recently when I read a small item about some more bailouts being requested by Fannie Mae and Freddie Mac. The Associated Press writer casually mentioned that the requested new bailouts “will cost the taxpayers as much as $259 billion.” That cost is in billions, not millions. It’s a figure far in excess of the $132 billion the two mortgage giants have been awarded since the September 2008 crash.
House Republicans are currently debating a plan to slash the federal budget by only $100 billion, far less than the projected $1.6 trillion deficit for the current fiscal year. And even that looks improbable. Shouldn’t they look to Fannie and Freddie for a place to do some meaningful slashing?
JBS Member or ShopJBS.org Customer?
Sign in with your ShopJBS.org account username and password or use that login to subscribe.
Subscribe Now
- 24 Issues Per Year
- Digital Edition Access
- Exclusive Subscriber Content
- Audio provided for all articles
- Unlimited access to past issues
- Cancel anytime.
- Renews automatically
Subscribe Now
- 24 Issues Per Year
- Print edition delivery (USA)
*Available Outside USA - Digital Edition Access
- Exclusive Subscriber Content
- Audio provided for all articles
- Unlimited access to past issues
- Cancel anytime.
- Renews automatically