Scott Sumner brilliantly follows the money

F is for failure:

1. The Fed. Losses unknown, but its tight money policy created the severe recession, which dramatically worsened the financial crisis.

2. Fannie and Freddie: Estimated losses $145 billion, and rising fast

3. FDIC, estimated losses $100 billion

4. The UAW: estimated losses from bailing out this adjunct of the Democratic party is $34 billion

5. Banks plus AIG: Estimated bailout costs is $29 billion and falling.

Yep, that sure looks like a failure of laissez-faire capitalism. And I didn’t even mention the FHA, which is furiously at work trying to create another sub-prime fiasco.