Skip navigation

Sarah Palin should stick to policy-free feel good speeches and field dressing mooses. She’s a hoot and a fireball, but clearly out of her depth. When discussing housing crisis, she stated that Freddie and Fannie Mac had gotten “too big and expensive to the taxpayers.” Wow, pretty consistent Conservative analysis. Impressive! Just one problem. Our taxes don’t support these two privately funded entities. Something tells me, Sarah doesn’t actually understand how stuff works. I mean other than hockey sticks, moose rifles and gas pipelines. Clearly, the woman can hide a pregnancy from the world for seven months. Hiding dumb is trickier.

Advertisements

3 Comments

  1. The community organizer might have the title of Messiah, but the Hockey Mom gets the new title of “Prophetess” in my book. You see while taxes have not supported Fannine & Freddie, the Prophetess sees that Fannie & Freddie “will be” too big and too expensive to the tax payer. Of course, our taxes have always supported Fannie & Freddie. It’s just that it has taken them a few years to demand the check (of course while skimmming the imaginary profits off the top). It’s our political class that doesn’t understand how things work, namely, government interference in the free markets is doomed to failure.

  2. Just as a little lesson in the free markets: a privately funded entity means that it’s capital, either implictly or explictly, is derived from private sources- there our no government guarantees whatsoever. If their business plan fails the company fails.

    In the case of Fannie and Freddie, the implicit government guarantee created a moral hazard which has been sucessfully tested by the markets to the point of an explict guarntee. Sure the common stockholders are wiped out, but the guarantee is really to the bond holders. They make out great while the government either taxes whomever it pleases or inflates the money supply to cover the losses. The company is nationalized and the failed business plan continues to fail.

    In other words, just because you call a cat and dog doesn’t make it a dog.

  3. Here’s a good definition of what Fannie and Freddie rally are:

    Fannie Mae is not a free-market entity, nor is it a private body that must compete on the same playing field as its competitors. Fannie Mae is representative of all that’s wrong with central planning institutions: it is a government-created conduit for carefully crafted financial and market socialism that the bureaucrats uphold for the purpose of propping up their fantasies for pandemic social engineering.


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 )

Twitter picture

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

Facebook photo

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

Google+ photo

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

Connecting to %s

%d bloggers like this: