A Discussion About the Acquisition of Fanny Mae and Freddie Mac

I discussed the Bush administration's takeover of Fannie Mae and Freddie Mac with four people knowledgeable about the matter's significance: Nouriel Roubini, New York University professor of economics; Mohamed El-Erian, CEO of PIMCO; Gretchen Morgenson and Floyd Norris, both with the New York Times. Here's some of what they had to say.

Comments

[Jesse in Laveen]

Number 5. on the Practical Program for Constructing Socialism: Centralization of credit in the hands of the state, by means of a national bank with state capital and an exclusive monopoly.

This certainly is above the list of privatization of all the countries factories and instruments of production which Venezuela is on track to do. Granted we are only half way there but so is Venezuela. Now tell me who is the true communist?

[joebaggadonuts]

Gee, what a bunch of whiners. /sarcasm

Nothing to see here, move right along. Go back to shopping and commuting.

[DallasMike]

I would think the Dems would like the fact that these 2 mortgage companies are now run by the Gov't isn't the goal of the left to have the Gov't stick their nose in every aspect of my life?

[Henry]

Mike,
If you've been paying attention over the past 25 years, it's the Republicans who make the socialist moves:
1) George Sr fails to let the FSLIC fail nationalizing the deposit insurance obligations in approximate amount $250 billion ( when $250 billion was real money)
2) George Jr provides proscription drugs for free to seniors at the expense of all taxpayers taking a chapter right out of the communist manifesto.
3) George Jr bails Bear Stearns putting a $30 billion guaranty by the Federal Reserve to JP Morgan to merge the failed Bear honoring all the "obligations" of Bear, not by Bear, but by the citizens of the country. Socialist.
4) George Jr nationalizes Fannie and Freddie making a fool of the right wing mantra of "market discipline".

I do not know if you are aware, but when Jimmy Carter gave federal assistance to New York City and Chrysler, the tax payer actually made a profit on the deal in each case.
Do you really think that the unfolding of the subprime mortgage loan securitization mess has anything to do with left wing regulation? (please tell) It's all about the greed and corruption of the free market run amok! Rules need to be in place for a market to function properly.

[Novista]

"sing to the fallen eagle, help is on the way, a team of guvmint experts is a'comin' to stay" ... near as I remember of a Stepehn Stills song from longa ago.

These government experts would have tried to stabilize the Tulip Bubble, had they been around then.

[Henry]

Aren't these great socialists, these Stalin's of finance who are "nationalizing" private, listed companies Republicans? Just what would a Republican do in a case like this? John McCain seems to be wearing his pink underwear here. Really, a Republican Maverick in pink underwear. Does that sound very "patriotic"?