OK, look, this whole thing with Freddie Mac and Fannie Mae is getting out of hand. Now, I don’t claim to be an economist, but apparently I have one thing most economists don’t, and that’s half a brain. If the Fed bails out the owners of most of the country’s mortgage debt, this will lead to crushing inflation,* because the only way to do that is to print more money, which makes all the money worth less due to some weird voodoo invented by Warren Buffet.†
So yeah, I’ll never be able to afford to retire and may not be able to buy a house because by the time BushCo. and friends get through with the economy, the Dollar will only be good as toilet paper. But as Atrios pointed out, there is a way to avoid this mess: let them fail. Then rebuild Freddie and Fannie as federal institutions. This would force the shareholders to eat a turd sandwich rather than half the home owners in the country. I don’t now about you, but I won’t loose any sleep knowing a bunch of rich idiots are slightly less rich. And if it means my parents get to keep their house and maybe one day retire, I call it a win win situation.
The reason it won’t happen is because Socialism is evil and poor people have a moral weakness, or so I’m told by McMaverick McCain. Unless they are already rich. The wealthy should always be able to gamble with the lives and means of the people, and then get a government handout to ensure that they never, ever learn their lesson. That way, we can repeat this fun exercise in flirting with societal collapse again in a few decades. Fun!
Link via Aaron at Semiconscious.org
*Or stagflation as they called it in the 70’s. Boy, wouldn’t it be great to go back to the 70’s? Rising gas prices, an unwinnable war draining the heart and soul of America and an economic malaise that could very well teeter into a new Depression. Sounds groovy!
† The weird voodoo in question is related to the fact that we have fiat currency. You may recall that this is what gets the Paultards and Randians in a twist, because we’re no longer on the Gold Standard, where our currency’s value is tied to a kinda sorta stable commodity. The fact that this commodity, gold, like all others also fluctuates never enters their dense little skulls. The short of it is that we’re kinda screwed and it’s all because some shriveled old uber-capitalists decided that it’d be swell to gouge the American citizens for a few decades. Unlike the old story of the Indians selling Manhattan for a box of beads, these guys sold all of America for a fat bank account, which they have thoughtfully moved offshore and are busy converting to Euros as we speak. That way, when we all get shit on real good, they will still get to keep most of their money, all the while, talking shit about how helping the poor is Socialism. This Buffet guy really should just stick to singing crappy songs about salt shakers and pirates.