by Bruce Krasting, Bruce Krasting Blog:
Monday, August 6, 2012
On the FFB – Once More
I frequently discuss the unregulated government lender, the Federal Financing Bank (FFB). I keep writing about its activities in the hope that someone in the MSM will pick up the story and run with it. So far, no luck.
The FFB story is an example of how the Obama Administration is using off-balance sheet financing to further its goals.
The FFB’s holdings as the date Obama took office and as of June 2012 are listed below. The loans outstanding have risen by $25Bn (65%) in three and a half years. The largest increases are in these categories:
Post Office – $6.1Bn–93% increase
Electric cars – $6.7Bn – 100% increase
Solar/Wind – $4.3Bn – 100% increase
Rural Utilities – $10.9Bn – 42% increase
The PO loans are garbage. There is no way that the PO can pay it back. Congress will have to do a bailout. The Congressional guarantee on the PO loans will be honored (it has to be) so the taxpayers will take the full loss.