The Risk of a Bailout Squared

Who will bail out the federal government’s bailout of the financial services sector?

Former U.S. Comptroller General David Walker has been actively spreading the word on the U.S. government’s precarious financial situation (and the need for a thoughtful response) since stepping down from his government post earlier this year.

The point he makes in this video interview with the Journal of Accountancy is chilling:

“The factors that led to the mortgage-based subprime [crisis] exist for the federal government finances. We must learn lessons [and] take steps to avoid a super-subprime crisis, which, frankly, would have much more disastrous consequences not only domestically but around the world.”

For more on David Walker, see his interview with Steve Player.