Fannie Help Mae and Freddy Macked

The nationalization of mortgage lenders Fanny Mae and Freddy Mac is the symbolic end of Bush style capitalism.

The unfettered "market rules everything" approach has collapsed on itself, leaving the tax payer to clean up the awful mess created by the greed of the very few. The Bush Administration believed that the financial sector was capable of writing its own rules, adhering to the philosophy that government would hamper economic growth and letting them do, well, whatever the hell they wanted.

The lesson we should learn is that free markets do not work by themselves. They do not miraculously correct themselves to create a perfect symbiosis between suppliers and consumers, and they are not the be all and end all of economic growth. Unfortunately, the lesson applies only to the majority of Americans not responsible for the almighty cock up. Fannie Mae's Daniel H. Mudd could get $9.3 million in severance pay, and Freddie Mac's Richard F. Syron could get a package valued at $14.1 million.

The moral of the story? Lobby the government to write your own legislation, make millions when markets are up, get bailed out when markets are bad, walk away with even more money. Simple, eh?

This parasitic approach to government is symptomatic of Bush style capitalism. It has created a nation of welfare junkies addicted to government paychecks at the expense of the tax payer.

What we need is a comprehensive welfare to work scheme that provides incentives for CEOs unable to wean themselves of the welfare state. Rather than bailing them out, the state can provide Daniel Mudd and Richard Syron with transportation, childcare benefits and vocational training. They will have a chance to prove themselves in the market place, and prove that they can stand on their own two feet without the help of the state.

I hear McDonald's is hiring.

Ben Cohen is the editor of www.thedailybanter.com and a contributing writer to www.espn.com and Boxing Monthly Magazine. He can be reached at [e-mail]

Comments

[Aaror]

At least Obama plans to end the tax break corporations get for paying massive salaries. I don't know if that will solve the 8+ digit salary problem, but it will help.

[dz555]

"The nationalization of mortgage lenders Fanny Mae and Freddy Mac is the symbolic end of Bush style capitalism." How very wrong you are. Very very wrong. What you think is the end is, in fact, just the beginning. Now that Bush capitalism has proven itself to be extremely successful you can expect a continuous succession of "privatize gains, socialize losses" events. Bush style capitalism will only end when it will literally be impossible to continue and not a moment before then. So hang for a Bush carnival ride to national insolvency-the momentum has far too much energy to be stopped now.

[PacificGatePost]

WHERE IS CONGRESS ON THIS?

The best we hear from it is related to suggesting reduced severance packages for outgoing executives? How limp.

How about a thorough analysis into the self serving actions of these institutions? Taxpayers deserve no less.

¦ and how ironic that the biggest Government INTERVENTION in history is being implemented under Bush"s watch, after his policies not only allowed, but stimulated the abuse.

[dgscol]

I am very angry about this whole saga. People are walking away, new born millionaires (one case of 14 million ) because we the taxpayers have bailed these institutions out.

Sarah was right - we cannot afford this, and also Dodd and his corrupt legislative practices. We should freeze this whole thing until we obtain noncorrupted officials and not allow reorg until we have straight people in charge. They are doing this, before the administrative switch over.

WE should have cut our losses with the Chinese - going 50-50, and covered our 50%. end of story. No bonuses from louses that destroyed this agencies.

[watchTVgetSTUPID]

The Bush government appointed McCain's former campaign finance manager to be in Charge of the bailout. This is proof that when it comes to corruption, McCain and Bush are joined at the hip. Now McCain can pay pack his campaign contributers with government money.

[ToonMoene]

> The lesson we should learn is that free markets do not work by themselves.

Why is it that people have to find this out over and over ?

Never played a game of Monopoly ? If you play it by the rules, one person will hold all the assets in the end - every single time.

[dgscol]

It is not a monopoly game - monopoly has rules.