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Home  l  Broadcast  l  WrapUp  l  Storm Watch  l  Perspectives  l  Sitemap  l  About Us The Barbarian at The Gate 'Barbarous Relic' Sounds Death-Knell for Keynesiansby Alex Wallenwein, Editor & PublisherThe Euro vs Dollar Currency War MonitorDecember 22, 2003 The following Reuters news item is outstanding in itself. Probably one of the best examples of financial news reporting I have seen so far. The reporter, Daniel Bases, is not afraid to say the unspeakable: that what normally counts as the accepted perspective of economic analysis - Keynesian analysis - is at a complete loss to explain the current phenomenon...

WASHINGTON -(Dow Jones)- The U.S. Federal Reserve released a staff study Monday saying the federal subsidies bestowed on government-chartered companies Fannie Mae (NYSE:FNM - News) and Freddie Mac (NYSE:FRE - News) are far higher than any previous estimates and the two do little to increase homebuying, lowering mortgage costs by just a fraction of previous estimates. "Fannie Mae's and Freddie Mac's ambiguous relationship to the government imparts an implicit subsidy to GSE shareholders and homeowners," the study reads, placing a dollar value on that relationship at between $119 billion and $ 164 billion. The report, prepared by staff economist Wayne...