The Political Inquirer

One of the biggest problem with this rushed-through bailout plan (other than the fact it will give us a fully socialized financial sector and turn our grandchildren into financial slaves to the State), is that it’s formulated by the idiots that got us into this mess.  I found a posting about a letter from someone who’s apparently run a bank right. These are the kind of people who should be formulating this thing, not the people whose incompetence has led us to this path of ruin.

I’ll give a taste of it by listing his first point; read the whole thing.

Freddie Mac and Fannie Mae are the primary cause of the mortgage crisis. These government supported enterprises distorted normal market risk mechanisms. While individual private financial institutions have made serious mistakes, the problems in the financial system have been caused by government policies including, affordable housing (now sub-prime), combined with the market disruptions caused by the Federal Reserve holding interest rates too low and then raising interest rates too high.