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The Myth of Free-Market Capitalism: The Case of Freddie Mac and Fannie Mae


John Simkin
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Guest Stephen Turner

the latest prediction here in Great Britain PLC, is the taxes will have to rise to cover our Governments largesse towards the banks, some estimate a rise of £900($1,500 aprox) a year for all Families.

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Hamilton is not fit to be an economist and he certainly doesnt understand FDR or the American System.

http://en.wikipedia.org/wiki/Myron_Scholes

And yet you continue to pimp the words of a college dropout....

Keep drinking the kook...er..koolaid Terry

I try to stay away from drinking too much koolaid. They say it can cause "hair loss".

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Hamilton is not fit to be an economist and he certainly doesnt understand FDR or the American System.

http://en.wikipedia.org/wiki/Myron_Scholes

And yet you continue to pimp the words of a college dropout....

Keep drinking the kook...er..koolaid Terry

I try to stay away from drinking too much koolaid. They say it can cause "hair loss".

In your case the "loss" appears to have done MUCH deeper than hair...

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How deep is "hair'? Opps sorry.

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How deep is "hair'? Opps sorry.

Sorry about what? Your being a LaRouche robot?

"Rim shot"

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On a more serious note, we are at a pivotal point in the national decision-making process as to whether (or the extent to which) the US govt bails out Fannie, Freddie and AIG.

Here is Ron Paul's thinking and advice on the issue:

http://www.cnn.com/2008/POLITICS/09/23/pau...lout/index.html

I largely agree.

I would rather have a recession now than perpetuate a failed system.

I think that the breaking news tonight about the US Justice Department's investigating the demise of the above institutions, along with Lehman Brothers, is designed to garner public support for the bailout by giving everyone the feeling that someone will be held accountable for this debacle.

I don't believe that anyone will be held accountable and I don't particularly care whether that happens.

In short, this breaking news about the investigation is a thinly veiled publicity stunt designed to spur the country (and recalcitrant Congress members and Senators) to back the Paulson bailout package.

I object to the government's socializing banking losses, while letting the shareholders and insiders reap the upside.

That kind of apporach is nothing more than "heads, they win, tails you lose".

Where Obama and McCain come down on this issue may serve as a pre-election test of leadership, certainly moreso than some of the other spin and news that we see everyday.

I think that neither one wants to go first on this matter.

Bankrupt institutions, and more fortunate (or prescient) ones who get acquired before declaring Chapter 11, will serve as good reminders as to what happens when management runs corporations on the fringes (from an operational and leveraging point of view).

In hindsight, the Fed (our shadow government) should have let Baer Stearns sink.

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I know little about economics, but I have followed this financial crisis as closely as I can for several days, and have come to this tentative conclusion: Paulson, Bernanke and company can take their bailout and shove it.

I didn't go buy some mortgage I couldn't afford, in fact I don't buy anything that I can't afford. Why should I pay for someone who did, and see my savings eaten up by inflation after the government prints 700 billion dollars in new bills to distribute to limousine beggars on Wall Street?

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Why should I pay for someone who did, and see my savings eaten up by inflation after the government prints 700 billion dollars in new bills to distribute to limousine beggars on Wall Street?

Because you have been given the privilege of living in God's country, Ron. This is the system America tries to export (often with force) to the unenlightened masses around the globe.

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It's all King George's fault. He should have done more to keep the colonies.

If you read your Adam Smith, I think you'll find poor King George was in the same shape at the time as our "king" George is today. It's a fascinating read about why the Brits needed the income from the colonies and how the East India Company members were costing them so much in expenses. The very people who hate government the most are the first who line up to get their share of government contracts, yet don't want to answer for the obscene profits they take out.

The ones who are now asking for the government and taxpayers to bail out Fannie and Freddie are the very ones who will soon be saying the government shouldn't be "competing" in the private sector and should sell out on the cheap--to them of course.

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The very people who hate government the most are the first who line up to get their share of government contracts, yet don't want to answer for the obscene profits they take out.

The ones who are now asking for the government and taxpayers to bail out Fannie and Freddie are the very ones who will soon be saying the government shouldn't be "competing" in the private sector and should sell out on the cheap--to them of course.

So true. Craig Lamson admitted some time ago that he had made money from the 400% increase in the share price of Halliburton under Bush.

As Lenin said: "Capitalists can buy themselves out of any crisis, so long as they make the workers pay".

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As Lenin said: "Capitalists can buy themselves out of any crisis, so long as they make the workers pay".

John-

To what bailout is the cartoon referring? The one that didn't happen?

Congress voted down the proposed bailout yesterday, of course, with both parties (in particular, the Republican Party) soundly rejecting it.

I hope that the Senate doesn't succeed in resusciating it when it convenes tomorrow.

Time will tell.

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John-

To what bailout is the cartoon referring? The one that didn't happen?

Congress voted down the proposed bailout yesterday, of course, with both parties (in particular, the Republican Party) soundly rejecting it.

I hope that the Senate doesn't succeed in resusciating it when it convenes tomorrow.

Time will tell.

I think you will find that it will be passed later on this week. The system will not be able to survive without it.

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