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  • Is the U.S. Going Broke?

    09/14/2008 10:45:28 PM PDT · by TigerLikesRooster · 96 replies · 630+ views
    Forbes ^ | 09/29/08 (issue date?) | Laurence J. Kotlikoff
    Is the U.S. Going Broke? Laurence J. Kotlikoff 09.29.08, 12:00 AM ET Now that the federal government has bailed out Fannie and Freddie, who's going to bail out the federal government? The federal government's takeover of Fannie Mae and Freddie Mac represents a huge financial tremor. These two institutions now issue 70% of Americans' mortgages. Their failure would have triggered a complete meltdown in housing and financial markets. So now Uncle Sam is on the hook for $5 trillion, consisting of corporate debt owed by those two institutions and mortgage debt guaranteed by them. If only the government's total debt...