Wednesday, September 10, 2008

Fannie Mae and Freddie Mac leaders get rewarded for poor performance...hmm.

Who bails out the average working Joe when their performance is poor?

The shareholders should throw them in the dungeon.


John & Melissa Baird said...

It's crap. Fannie and Freddie, operating as some convoluted private-government enterprise, have been in serious trouble for a minimum of a decade (and more serious research would likely reveal problems reaching back to the 1930s when Fannie was created wholly as a government entity). Numerous reform attempts over the years have been blocked by Congress. Now that the government "owns" Fannie and Freddie again, which was arguably the best of the available bad solutions -- akin to removing a major organ to save the body -- it sets a precarious precedent. The more government controls our traditional free-market system (hence making it the opposite of a free-market system), the weaker our economy becomes. Do any of us really want to see our vehicles produced by the same guys that set the tax code? -- "Refer to line 453b to turn the ignition (except in cases of rain, then refer to appendix 12c)." Except it's worse than that. Over and above the inneficiencies associated with government, imagine how much more power it has when it owns private enterprise. Don't believe me? -- Cross index Putin and Yukos or Chavez and Banco de Venezuela.

Cap'n said...

This has been a disaster waiting to happen and it finally did. You have to love the quasi-government agencies...the best of all worlds and really none of the consequences. The Post Office is another one.

John & Melissa Baird said...

Here! Here! Let's get rid of the post office. That would be awesome. We could even create some way to send correspondence online for free. Just think of it!