Sunday, November 7, 2010

Bankruptcy of U.S. is ‘Mathematical Certainty,’ Says Former CEO of Nation's 10th Largest Bank

Even more evidence that Frank and Dodd refused to recognize the danger to our economy being done by Fannie and Freddie. What amazes me is that the voters returned Frank for another two years. Thankfully, Dodd is gone.

Signs are that the Fed is about to print billions of dollars of paper money to "spur" the economy (i.e. bail out big banks). Obviously, if you cannot tax anymore, then you have to steal our money some other way. If this continues, hyperinflation here we come. Those $20 bills will come in handy in those soda machines.

This from John Allison, who for two decades served as chairman and CEO of BB&T, the nations 10th largest bank:

“I think the first thing we have to realize is where we’re going and to face it objectively,” Allison told, when asked about the trillion-dollar-plus deficits the federal government has run for three straight years, the more than $13 trillion in federal debt, and the $61.9 trillion long-term shortfall the government faces (according to the analysis of the Peter G. Peterson Foundation) if the government is to pay all the benefits it has promised through entitlement programs.

“If you run the numbers, on all those numbers that you just talked about, which I think are accurate, very accurate, in 20 or 25 years, the United States goes bankrupt,” said Allison. “It’s a mathematical certainty.

In his interview with Allison said that when belonged to the Financial Services Roundtable they examined Fannie Mae and Freddie Mac and determined they were going bankrupt. Congressional leaders, however, did not heed their analysis.

“I was on a committee, a Financial Services Roundtable, for nine years trying to do something about Freddie Mac and Fannie Mae,” said Allison.

“You couldn’t help but see it coming,” he said. “You ran the numbers, particularly the last several years, and it was mathematically certain Freddie and Fannie were going bankrupt.”
“We met with Congress. We met with [House Financial Services Chairman] Barney Frank and [Senate Banking Chairman] Chris Dodd and they absolutely wouldn’t see it,” said Allison.

Read full CNS News article and view video here.

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