“ At the moment, two of the biggest elephants in the room, so to speak, are going tits-up with X’s where their eyes used to be. These would be the “affordable housing” enablers Fannie and Freddie, who managed during the past decade to make housing virtually unaffordable for any normal, responsible person unwilling to game the system — with the additional consequence that not only the housing market but the general credit-and-lending apparatus of the US has entered a state of morbid failure. These two corporations are now dead, incurring a legacy of obligation that will add five trillion dollars to the national debt at one stroke. Nobody knows what the exact results of this debacle may be — and the current silence about it is deafening — but odds are the effect will range somewhere between destroying the currency and bankrupting the United States altogether.
