From the "Lessons Never Learned Department": Fannie and Freddie

Remember Fannie and Freddie? Kinda the Ground Zero targets for the housing bubble and toxic mortgage collapse of the financial system? Well, the dirty little secret is that they are alive and well and we are still pumping money into them to prop them up and to prop up the dysfunctional part of the whole housing industry.

So what, you say?

As this WSJ article explains, there are other huge unfunded liabilities in F & F due to the fact that they purchase mortgages at above value prices in essence discounting the underlying interest rates to subsidize the mortgages for people by keeping rates artificially low.

The difference between value and price is the building time bomb that some future Administration (and you and I) are going to have to account for (ie, pay for).

So, once again, the Administration that promised unprecedented transparancy is again, throwing its promises in the trashbin.