CBO Comes Close to Saying It Made Up That $25 Billion Freddie, Fannie Rescue Cost Estimate

"Readers may have seen that we cast aspersions on the CBO's estimate that the Fannie and Freddie rescue program would "probably" cost taxpayers $25 billion. We had noted that the estimate was only through 2009 because that's how far the authorization extends, but there is no way that Fannie and Freddie will ever be cut loose. Thus an estimate the looked at the liability that was really being taken on, which is open-ended, would come up with considerably higher numbers. A couple of readers stressed that that is how the game is played and the CBO can only opine on bills as written. Hence, legislation is drafted with sunset provisions that everyone knows are a fiction."