Obama’s Budget Has One Small, Missing Piece…. For $6.3 Trillion Dollars
Today, to much fanfare, the administration released its ridiculous $3+ trillion budget (we say + because at that size the one thing certain is that the budget will certainly never hit the target and while we wish it would be lower, we are certain it will end up materially higher), which consists of a “short” 192-page summary section and a 1420 page appendix.
We are confident that not one politician will read the whole thing from cover to cover.
We won’t either.
Not because we don’t care about what’s in it, but because we are much more concerned with what is not included, namely $2.8 Trillion and $1.9 Trillion of MBS guaranteed portfolios at Fannie and Freddie, and an additional $782 billion and $809 billion in company debt outstanding for the two GSEs, respectively.
This amounts to a total of $6.3 trillion in liabilities which should be counted toward the budget. And yet, oddly, …