Tuesday, September 16, 2008

Why No Investigation into Freddie & Fannie?

Because the largest recipients of brides, I mean kick-backs, I mean political contributions were Democrats. These make Enron look like a small business.

The failure of these institutions demonstrates the federal government's inability to deal honestly with voters and the marketplace. The rescue of these institutions with taxpayer money should be criminal.

If you think those were busts, wait until the Medicare and SS trusts go boom. I know all the pols in DC are hoping their dead before that happens. I'm hoping they're not. I think we first fund it with their wealth, pension and retirement accounts, especially for the career pols.

At least Paulson didn't do the same for Lehman. There must be negative consequences in the marketplace for unjustifiable risk taking. When government is backstopping the risk/reward curve, nothing good happens. Why we don't learn from our history and the history of other nations (i.e. Soviet Union) that the hybrid market/central planning model doesn't work is beyond me.

Are the American people that uneducated in markets and economics? Well, based upon what I'm seeing, I guess they are.

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