I want to cry.

I, very briefly, saw some-thing about the pending Fannie/Freddie “bail-out” and wanted to post on it; I failed to read the article, not to mention to comment on it. Rod has it here.

for legislation that would offer an explicit government guarantee on the $5 trillion of debt owned or guaranteed by the companies. But that is a far less attractive option, they said, because it would effectively double the size of the public debt.

Would effectively double the size of the public debt. Think about that. Freddie Mac and Fannie Mae are pretty much the dictionary definition of “too big to fail.” Well, is the US economy too big to fail? We’re talking about potentially doubling the federal deficit, and that’s before the Boomers even get started retiring.

Free markets, eh? This disgusts me. Maybe, rather than bailing them out, the government should let them be, housing market be damned. I hate to advocate policy that, doubt-less, will hurt many hard-working Americans, but we need to start ripping off bandages left and right. This, I believe, is a good place to start; moreover, I have no doubt that, resilient as we allegedly are, with the help of friends, family, and neighbors (Viva Burke’s little platoons!), those who still cling to their home “ownership” (that is, long-term leasing-to-buy, if we wish to speak truthfully of the state of home ownership), but who won’t survive some-thing as catastrophic as a FMNA/FHLMC collapse, will find a way to make it out alive, and probably stronger for it.


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