My initial thought about the word "harangue" was a sweatshirt I bought from the San Diego Zoo which had close to 15 synonyms for bother as in Don't bother the animals. "Don't bother, vex, annoy, harass, harangue, perturb, nettle, molest, harry, provoke, pester, plague, and beset the animals!" This statement should apply to bloggers, and is the Financial Improvisor ever vexed! I feel a harangue coming on...
I'm perplexed by the Treasury Department's economic policy move of the week of blocking of the sale of tax credits from Fannie Mae to Goldman Sachs and Berkshire Hathaway. Fannie Mae, for those that have been living in an alternate dimension, was placed into conservatorship by the U.S. Government last year. Fannie Mae lost a ton money and the Federal Government (read U.S. payer) had to chip in a whole bunch of money. So while Fannie Mae loses money, their deferred tax credits are worthless to them. They want to sell them. Goldman, who is making a ton of money and where former Secretary of Treasury Paulson was partner, wants to buy them. (Both the NY Times and the Wall Street Journals have reported on this news item).
So the current administration now has to deal with the political fall out of:
- letting the sale go through and Fannie Mae asks for less money but the U.S. Taxpayer gets hurt because Goldman Sachs pays less taxes or
- preventing the sale and Fannie Mae has to ask for more money thereby hurting the U.S. Taxpayer.
They chose option number two! Yipee! Let's throw good money after bad. Aren't we glad for both former Secretary Paulson and current Secretary Geithner? I wish I had a money printing press.
I'm collecting the nails I'm spitting for a remolding job in my depreciating house.
Blog of the Blog
If you like rants from your average Joe autodidact, then I highly recommend An Adhoc Life by Shawn Westfall. He has a Master's degree in Literature (which means he is underemployed), performs improv and teaches his secrets to the Financial Improvisor!
Funny stuff.
Next week is "Disintermediation" from Bill L. of Maryland.
