Skip to main content

Fannie Help Mae and Freddy Macked

  • Author:
  • Updated:

By Ben Cohen

The nationalization of mortgage lenders Fanny Mae and Freddy Mac is the symbolic end of Bush style capitalism.

The unfettered 'market rules everything' approach has collapsed on itself, leaving the tax payer to clean up the awful mess created by the greed of the very few. The Bush Administration believed that the financial sector was capable of writing its own rules, adhering to the philosophy that government would hamper economic growth and letting them do, well, whatever the hell they wanted.

The lesson we should learn is that free markets do not work by themselves. They do not miraculously correct themselves to create  a perfect symbiosis between suppliers and consumers, and they are not the be all and end all of economic growth. Unfortunately, the lesson applies only to the majority of Americans not responsible for the almighty cock up. Fannie Mae's Daniel H. Mudd could get $9.3 million in severance pay, and Freddie Mac's Richard F. Syron could get a package
valued at $14.1 million.

The moral of the story? Lobby the government to write your own
legislation, make millions when markets are up, get bailed out when
markets are bad, walk away with even more money. Simple eh?

This parasitic approach to government is symptomatic of Bush style
capitalism. It has created a nation of welfare junkies addicted to
government paychecks at the expense of the tax payer.

What we need is a comprehensive welfare to work scheme that provides
incentives for CEOs unable to wean themselves of the welfare state.
Rather than bailing them out, the state can provide Daniel Mudd and
Richard Syron with transportation, childcare benefits and vocational
training. They will have a chance to prove themselves in the market
place, and prove that they can stand on their own two feet without the
help of the state.

I hear McDonalds is hiring.