- Feb 12, 2007
- 59,384
- 24,019
- 2,290
So your thinking is politicians are going to run a stand alone entity that competes on it's own without government funding against private companies and taxpayers aren't going to end up footing the bill for the ridiculous promises it'll make it's customers? Why am I skeptical? Do the names Freddie Mac and Fannie Mae mean anything to you?
I suppose you want to assert that Freddy and Fannie were govt. run and not privately held companies?
On September 7, 2008, Federal Housing Finance Agency (FHFA) Director James B. Lockhart III announced pursuant to the financial analysis, assessments and statutory authority of the FHFA, he had placed Fannie Mae and Freddie Mac under the conservatorship of the FHFA. FHFA has stated that there are no plans to liquidate the company.[33][34] The announcement followed reports two days earlier that the federal government was planning to take over Fannie Mae and Freddie Mac and had met with their CEOs on short notice.[50][51][52] Under plan announced September 7, 2008, the federal government, via the Federal Housing Finance Agency, placed the two firms into conservatorship, dismissed the firms' chief executive officers and boards of directors, and caused the issuance to the Treasury new senior preferred stock and common stock warrants amounting to 79.9% of each GSE.
Furthermore it was the capiltalist GREED that did them in.
On December 18, 2006, U.S. regulators filed 101 civil charges against chief executive Franklin Raines; chief financial officer J. Timothy Howard; and the former controller Leanne G. Spencer. The three are accused of manipulating Fannie Mae earnings to maximize their bonuses. The lawsuit sought to recoup more than $115 million in bonus payments, collectively accrued by the trio from 1998–2004, and about $100 million in penalties for their involvement in the accounting scandal.
So government created Fannie Mae and Freddie Mac and when they crashed you use them as an example of the failure of capitalism. All roads lead to Rome for liberals, where Rome is the inherent truth of liberalism. Even when socialism fails, it's proof of the need for socialism. You just made a great case against government creating a health care insurer to compete against private insurers. Think about it...
It's pretty typical that Progressives blame the failure of Big Government Programs to centrally manage the economy upon the Free Market Capitalism that such programs destroy.