Fannie Mae, Freddie Mac Should Both Be Done Away With
Please read this commentary by Harvard economist Jeffery Miron and also this article by Stanford economist Thomas Sowell.
Folks, if we don’t hand over this unprecedented amount of money to the Treasury Secretary, the sky is not going to fall. And if the sky does fall due to their not being a bailout, then it needs to fall. Both of the aforementioned academics are calling for the abolition of Freddie and Fannie. Government caused this mess with the pressure it placed on the private sector to loan to anybody and everybody, and the perception of government backing (Fannie/Freddie). If there were no Fannie Mae or Freddie Mac to begin with and no pressure to make politically correct loans, none of this would have ever happened. Yes it true that there would be less home ownership for the downtrodden. But those people that the government tried so hard to put into houses, would also be walking around with a dollar in their pocket worth a heck of lot more than it is now.
If this plan, in any incarnation, never gets passed, watch the dollar gain value in the long term, and watch the price of crude plummet. Might there be a recession? Sure, but a recession is exactly what we need. CONGRESS AND THE PRESIDENT SHOULD STOP MESSING AROUND WITH BUSINESS CYCLES. FOLKS THAT IS NOT CAPITALISM. WE ARE NOT SUPPOSED TO BE A CENTRALLY PLANNED ECONOMY.