Bankruptcy of U.S. government “mathematical certainty” says banker


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The former CEO of one of the nation’s largest banks says that unless the federal government gets its budget under control, bankruptcy is a “mathematical certainty.” I especially like this quote from the CEO, John Allison, in describing the past history of Fannie Mae and Freddie Mack:

“I was on a committee, a Financial Services Roundtable, for nine years trying to do something about Freddie Mac and Fannie Mae,” said Allison. “You couldn’t help but see it coming,” he said. “You ran the numbers, particularly the last several years, and it was mathematically certain Freddie and Fannie were going bankrupt.”

“We met with Congress. We met with [House Financial Services Chairman] Barney Frank and [Senate Banking Chairman] Chris Dodd and they absolutely wouldn’t see it,” said Allison.

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  • Kelly Starks

    >..We met with [House Financial Services Chairman] Barney Frank and [Senate Banking Chairman]
    > Chris Dodd and they absolutely wouldn’t see it,” said Allison.

    Hell they were both saying after the collapse that Freddy and Fanny were working fine and needed to be dramatically expanded.

    Course. Barney got reelected easily – and Dodd retired – but I’m not sure his voters were bright enough to vote him out.

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