29 September 2008

Who Let Fannie Mae and Freddie Mac Fail?

Watch this, and I think you'll have a pretty good idea.

This whole mess seems to revolve around Congress trying to make housing "affordable." The way to make housing "affordable" is to let people keep more of their money. (Hint: They can afford more that way.) And if we don't want to be in this mess again, then don't allow - or compel - banks to lend money to people who can't afford to pay it back. Duh.

Hattip: Creative Minority Report.

UPDATE: Back in 2004, Slate asked this question about Raines at Fanne Mae:

Is he the perpetrator of an accounting crime, the target of a political witch hunt, or the victim of an overzealous bureaucracy?

I think we know the answer now. You know if Raines had been a Republican, he'd be under indictment by now. I mean, this is way bigger than Enron. But unlike Enron, Congress caused this disaster - and defended Raines.

UPDATE: Here's a rather creative site (NSFW!) for helping you, the average consumer, participate in this bailout Congress is proposing.

UPDATE: Roger Kimball has much more - with lots of links - concerning "Who Let The Cash Out!?!" (Who? Who?) I predict that we'll be hearing a whole lot of the "we-shouldn't-focus-on-placing-blame-but-focus-on-solving-the-problem" meme from the Democrats and the Mainstream Media.

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