The Wall Street Journal reports:
The government takeover of mortgage companies Fannie Mae and Freddie Mac could end up being more expensive than the Troubled Asset Relief Program, according to an analysis by Subsidyscope, an initiative of The Pew Charitable Trusts.Great moments in fascist economics.
Fannie and Freddie could require $290 billion in subsidies this year, and an additional $99 billion over the coming decade. That comes on top of a nearly $108 billion loss in 2008.
TARP, meanwhile, could have a net cost of $336 billion this year and $20 billion in 2010, according to estimates from the Congressional Budget Office. Congress approved TARP last fall, authorizing the Treasury Department to spend some $700 billion to recapitalize banks in part by buying up assets. Presumably, Treasury will recover some of that money, depending on how well those assets perform.