USA Socialism: Fannie Mae + Freddie Mac

There is a new news item posted at »ASE Labs

»USA Socialism: Fannie Mae + Freddie Mac

I try not to really step into politics that much on ASE Labs except when it comes to freedoms and digital matters, but I'm truly appalled at what the US government is doing with the financial institutions.

Let me give my thoughts on what I THOUGHT the USA was: I thought the the United States of America was a capitalist society. Granted, I understand that a pure capitalist society may harbor problems such as monopolies and such, which is why we have limits on such activity. Even so, business in America is capitalistic. Private entities own them and run them. Government DOES NOT own or run them. They may regulate some industries (utilities or things that provide life giving services like power and water), but all in all, they stay out of the way.

What the government proved when they decided to bail out Fannie Mae and Freddie Mac is that it is a SOCIALIST entity. These two companies ARE private entities and as such the government should not get into their affairs to help them when THEY SCREWED THEMSELVES. Think about this, the government now owns those companies. See a problem with this? Or are you blinded by how well your stocks are doing now?

When big businesses don't need to worry about falling under due to bad choices or risk, what is the point of providing a good service to the market? The problem is the US government, not the closing of these two companies. If these two companies were destined to close, then so be it. They are private and it is their problem, NOT THE TAX PAYERS. Do not throw me the line about how the economy will suffer. What you need to understand is that the people that decided to bail these companies out ARE IN BED with the group that controls the money. Everyone on the board of those companies should be indicted and the Treasury secretary needs to be removed and perhaps charges be brought against him. This is absolute lunacy when the people let things like this slip by unnoticed. The board of those companies should not walk free.

Letting these things pass by is the start of very, very bad things for this country. Call your politicians now and let them know that you are NOT in favor of turning America into a socialist country. I know I'm making the call to all of them in my state.

I do not enjoy watching my country that I grew up knowing that it is the best country in the world fall by the government-banking complex. Break this trend now, let the country go back into capitalism and stop these banking bailouts.

Please add your comments below.

There are really two main problems with the argument that they don't need help (though I still don't like the bailout, and it is mostly their fault):

• The government was partially to blame for the artificially inflated housing market with their stress on how everyone in America has a right to own a house. This set up people to end up defaulting on their loans, and the banks couldn\'t very well be expected to not give out loans, could they?
• Two of the largest companies in the country exploding when the economy is in the whole wouldn\'t be the best thing for recovery.

Besides, this has happened before.
On that note, the Big 3 all want in on Obama\'s (and as a reaction, McCain\'s) promise of the $25 billion (the kicker is they want double the promised amount, so $50 billion instead), but for some reason the Big Three in this case include Ford and General Motors, who don't need the money regardless.

I'm not surprised it was under the Carter administration that Crysler got its loan...

But now you see companies lining up for government bailouts...

We are really screwed. Like I said, if you're a big business, you need not worry about taking risk anymore since the government will cut you a check to keep going.

I think I should explain: I completely support Congress giving Chrysler another loan. Not anywhere near as much as they want, mind you, but enough for them to fix themselves like they did in the 80s. Because Chrysler's current position didn't occur through any direct fault of Chrysler themselves. I think their case is when of those exceptions that prove the rule.
However, I simply cannot fathom why Ford and GM; who are international businesses with bustling overseas business and well-thought-out and underway restructuring plans for the American market (none of which Chrysler has); need any money whatsoever.