Future Bailouts of America -perpetual money machine at taxpayers expense

February 15, 2010 05:28

By GRETCHEN MORGENSON February 13, 2010 via New York Times

AS Washington spins its wheels on financial reform, it’s becoming painfully clear that the problem of entities that are too interconnected or “too politically powerful to fail” is also too hard for our policy makers to tackle.

This is more than unfortunate, given how large the too-influential-to-fail gang has grown in recent years. Once a small membership organization comprising Fannie Mae and Freddie Mac, the mortgage finance giants, and the occasional troubled auto company, the Future Bailouts of America Club now includes a long list largely populated by financial institutions.

We can’t be sure who the specific members of this club are — regulators simply say they know ’em when they see ’em. But this much is certain: They’ve seen a lot of them lately.


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