DC Swamp Redefines Term “Red Ink”

The Biden-Harris-Swamp combo will have somehow lost $65.2 billion in fiscal year 2025 alone via bad loans & guarantees. And, that expected accounting bloodbath is twice as bad as it was in 2019.

The WSJ’s editorial board was livid in its “The Biden-Harris Subprime Bank”, when they opined: “Move over Countrywide Financial (of 2008 housing panic fame). Washington’s new favorite subprime lender is none other than Uncle Sam. In a little noticed report last week – make that not noticed at all – the Congressional Budget Office estimated that the feds will lose $65.2 billion on its risky loans & other ‘credit assistance’ in the next fiscal year.”

The devil, as always, is in the details. “Blame Congress for creating new lending programs,” the editors explained, while “Biden officials are also underwriting more debt & easing payments & credit standards for borrowers.” Perhaps the most glaring culprit is the inflationary “Inflation Reduction Act,” which authorized the Energy Department to issue $350 billion in loans & credit guarantees, much of which is earmarked for risky green energy initiatives. This is on top of the law’s $1.2 trillion in other climate spending & tax credits over the next decade. The editors noted, “CBO projects that a quarter of DOE’s new loans & guarantees win fiscal year 2025 – about $13.5 billion – will be written off.” And, Joe & Kamala want to keep trying to “forgive” how many more billions in federally guaranteed student loan debt?

Davd Soul