Posted on 11/18/2008 4:01:26 PM PST by Lorianne
The financial peril of Fannie Mae and Freddie Mac--the government-sponsored, government-regulated mortgage giants regarded as instrumental in solving the nation's mortgage market problems--has one benefit. It should help expose the lie that today's financial problems are the result of an insufficiently regulated market.
For too long, the refrain has gone, Congress and the administration have been asleep at the wheel when they should have been steering the economy by expanding government control over the housing and financial markets. Economist Paul Krugman slams the administration's "free-market ideology"; he urges Bush to "reverse course now" and "seek expanded regulation."
All this overlooks a crucial fact: There has been no free market in housing or finance. Government has long exercised massive control over the housing and financial markets--including its creation of Fannie Mae (nyse: FNM - news - people ) and Freddie Mac (nyse: FRE - news - people ) (which have now amassed $5 trillion in liabilities)--leading to many of the problems being blamed on the free market today.
(Excerpt) Read more at forbes.com ...
Somebody may not live to see Christmas, sadly...
Like the Government will ever take responsibility...
When you say “government” in this case do you refer to the democrats in congress? If that is the case then why didn’t the republicans point that out in the campaign.
btt
I actually mean the whole of Government.
Take LA, for instance, it is currently $4 billion in debt; two contractors are threatening to cut off their services unless paid (a police-vehicle fueler, and a prison-food provider, IIRC).
Take the general Congress, democrat and republican alike, we are TRILLIONS in debt and their solution is to SPEND BILLIONS THEY DON’T ACTUALLY HAVE!! {Insanity.}
Take the federal investigation of ACORN; have you heard ANYTHING about it’s progress... even though it’s in at least 17 states?
What about these incidents where recounts in elections keep occurring until the loser suddenly is the winner? What about all the mail-in absentee ballots, esp. from overseas-deployed military personnel that are simply discarded. (FL; Bush v. Kerry) (And Government wonders why people don’t trust it...)
The gov. is OK. There are too many rats and too many stupid people who elect the rats.
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