As usual, the implementing of socialist measures under the guise of capitalism has resulted in another financial disaster, as the failure of Freddie Mac (NYSE: FRE) and Fannie Mae (NYSE: FNM) have revealed.
What's been amazing about it, is capitalism has been blamed as the culprit by many, when in fact it is the socialist failure of government-backed financial systems that has brought us to this place.
As one writer said concerning getting to the core of the issue:
"We are now getting down to the heart of the matter, which turns out not to be rampant capitalism but out of control back-door socialism."
He goes on to say that there's nothing free market about these mortgage backers, who have "socialized trillions of dollars of mortgage risk on the backs of U. S. taxpayers."
This is really the dirty secret that the goverment is hoping most Americans don't catch on to. The idea of bailing out the two institutions makes it look like the government is coming to the rescue of Americans from capitalists, when in fact they're trying to hide the socialist failure caused by their systemic, built-in causes, which brought the expected effect.
They even had the gall to call American banking and financial institutions "predatory," when in reality is was the government backing and purpose of these loans to make it easier for people to buy a home. If it wasn't for these socialist institutions (Freddie and Fannie), people wouldn't have been allowed to make the purchases in the first place, as private businesses wouldn't have given out the risky loans.
Of course there are many more U.S. government programs that encourage this socialist behavior, but the performance of Freddie and Fannie is enough to show where it always inevitably leads to when the government goes beyond its mandate.
All of this needs to be privatized, and the experts take over the field. We've seen what government interference can do.
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