RWL: Let Freddie Mac and Fannie Mae Fail?
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Published July 15th, 2008
I was preparing to write a post on this, but DJ McGuire of RWL got to it first. It’s fairly provocative. DJ’s thesis?….
The transportation special session had barely ended when the troubles of Fannie Mae and Freddie Mac began to dominate MSM reporting (oddly enough, bloggers have been largely quiet about it). I mention that juxtaposition because it enabled a few things to come into focus and stark clarity, leading to one ominous, painful, yet inevitable conclusion: we must let these mortgage giants fail. That’s right: fail - as in declare bankruptcy, fall into receivership, have the assets unloaded, etc.
I tend to agree. We are supposed to be a capitalist society. If businesses make bad decisions, businesses often fail.
Today, everyone seems to rely on gov’t. to bail him/her out. I think that is a dangerous trend.
Here it comes Brian.
“Why do we fall? So we can learn to pick ourselves up.”
Hopefully I got that movie quote right, if not, I am sure Brian will correct me.
sounds good, Alfred
You didn’t let me down.
I was actually going for Thomas as Alfred was quoting Thomas.
I’m actually inclined in this direction somewhat myself, though i still would like to feel i understood more about the implications. Though i don’t visit it as much these days, i was and remain a big fan of Jim Bacon and his blog, as mentioned in DJ’s original post.
And just to stir the pot and engage in JR’s least favorite sport (blame everything on Bush), hasn’t Bush exacerbated this as much as anyone else through his “ownership society” vision?
He’s not the only president to encourage these types of loans.