Well now we’re about to see a government bailout the likes of which Lee Iacocca could only have imagined. Indeed, we are seeing the triumph of high-stakes government control of America’s economy.
Fannie Mae and Freddie Mac, those bizarre government boondoggles who again are being cited for shaky accounting and that I have criticized before, are about to be taken over (temporarily, supposedly!!) by the federal government. Of course this represents the logical conclusion of their path–what else but a cashing-in of their “implicit government guarantee” given the moral hazards involved?
This situation represents a true summation of the moronic regime of George W. Bush–a high-handed fake capitalist, who learned long ago that those holding high corporate positions or government connections in modern America fail upward without regard to results–and so it is with the stupid Henry Paulson and the dim-witted Ben Bernanke, those creeps that Bush put in charge of the U. S. Treasury and the Federal Reserve respectively, who are meeting now in preparation for announcing the massive government bailout of those collapsing GSE mortgage market meal tickets, Fannie and Freddie, which the Chinese are fleeing faster than the floodplain of the Three Gorges Dam.