Hi All,

The Congressional Budget Office is reporting that the balance sheets from the Fannie and Freddie takeover may have to be added to the federal budget. Provided this is correct, the US will have an additional $5,400 BILLION in liabilities.

The two mortgage companies have between them $5,400bn in liabilities, equal to the entire publicly traded debt of the US, alongside mortgage-related assets of about equal value. These will now all be accounted for by the CBO, although public accounting rules mean that its tally of US government debt may not necessarily increase by $5,400bn”. (Financial Times, 9/9/08).

The reporting here is a bit equivocal, but the situation may soon become very good for a tax increase.

Whats most bothersome about this situation is that, provided a tax increase is necessary, the little guy will bear the brunt of the mistakes of a few CEOs. Why should taxpayers suffer the losses in bad times and CEO’s take the profits in good times?

Thanks,

James

MANAGE YOUR MONEY TOGETHER

Here are some simple guidelines for DINKS to build wealth:

1) Collaborate: Meet regularly to talk about money, set goals together, track and monitor them.

2) Understand and respect your partner. Take time to understand your partners values about money.

3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

4) Max your retirement. Maximize contributions to your tax deferred retirement accounts.

5) Invest in stock. Stocks perform better than bonds or cash.

6) Avoid high interest debt. Credit cards and title loans are financial cancer.

7) Diversify. Don't put all your eggs in one basket.

Couples Finance

Blogs You Should Read

Companies Supporting The DINKS

Please consider visiting our gracious supporters:

Get an education with the Online Certificate Programs at Washington Tech