Department of Treasury Seal

Department of Treasury Seal

So, the first "estimates" on the cost of the Fannie and Freddie bailout are out. The high end number being talked up is 100 billion. The cost will be higher than that in the end, guaranteed, and in the meantime Treasury has asked for a money without strings, to be spent as they choose. Just like in Iraq and everywhere else, it looks like Congress is agreeing. The plan is one that bails out stockholders and investors, maximizing moral risk, privatizing the profits and socializing the risk.

Business as usual, in other words.