Kumbaya time

Uh-oh. The US government has discovered more giant banking firms that are TOO BIG TO FAIL. I have no quarrel with taxpayers stepping in to bail out Fannie Mae and Freddie Mac. In fact the guarantee was always implicit. My problem is that when times were bubbling along, so to speak, Fannie and Freddie executives fought regulatory oversight tooth and nail and claimed that all gains accrued to them. They worked the system to pay themselves monstrous salaries and complained about the evils of government regulation. Conservatives backed them shouting their laissez-faire mantra.

Now that the bubble has popped, however, it turns out that the same people love socialism. Fannie and Freddie must be supported by everyone, they say. We’ve all got to come together to support these important institutions in these desperate times!

So, to recap: when there’s money to be made, it’s hard-core capitalism all the way; but, when the red ink is flowing it’s time to start singing Kumbaya if not The Internationale.


Leave a comment

Filed under economics

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s