Gov. Palin is right: “Fannie Mae” and “Freddie Mac” have grown so vast in size with federal credit guarantees and an estimated $10 billion/yr in hidden subsidies such as permanent tax holidays. Most significantly, b/c the political class of both parties has allowed them to be quasi-public with guarantees (”capitalism in good times and socialist in bad times”) the taxpayers are on the hook for countless tens or hundreds of billions of dollars. No matter what happens now they are “Too expensive to taxpayers” because we are all on the hook together for countless billions of $$$.
We are now in a lose-lose situation where any option is going to be extremely costly, and some are hoping that the federal takeover with “only” cost maybe $50 billion or (they hope) under $100 billion, whereas if the two companies were allowed to continue to blunder toward collapse it could end up costing the taxpayers hundreds of billions????
So Gov. Palin is exactly right that this farcical situation has been allowed to go on for far too many years, to the point that taxpayers get screwed either way.
btw, I knew Dean Baker (one of the so-called “economists” quoted) in another time and place, and he is a nasty vicious POS. He is one of the people who years ago made me come to despise leftists with a personal intensity..... he was DailyKos or DU long before the web existed, though of course he tries to pretend to a lofty objectivity when he is babbling in public.
2 of the 3 “economists” quoted are socialist fools associated with “Center for American Progress” and the socialist rag “American Prospect”
That means they don’t know anything much about economics, no matter what degrees they may have obtained.
The 3rd is from CATO and makes a reasonable point that is consistent with what Gov. Palin is saying.
Another “non-Gaffe” from the lying MSM. I’m sure they are being spoon-fed by the likes of Media Matters and HuffPo, et al.
It’s a nothing ‘gaffe’. The vast majority of Americans have no idea what exactly Fannie Mae and Freddie Mac are, or have to do with the economy. Now, if she were to say something at odds with what every normal American knows to be true, then she might have a problem. But this is only an issue to the ‘gotcha’ elite waiting for her to stumble.