Congress Underscores the Fact That America Doesn’t Have a Free Market
By Duane Lester • Jul 26th, 2008 • 180 ViewsThe Senate passed a big bill to save Americans from the housing crisis. So, we are once again saved from our bad decisions and are free to make future, um, bad decisions:
The bill props up Fannie and Freddie, known as government-sponsored enterprises (GSEs), allows the refinancing of up to $300 billion in distressed mortgages, enacts a package of tax breaks to help the housing market and tightens federal oversight of Fannie and Freddie. The two mortgage giants saw their stock plunge this month as fears rose about their solvency.
As Elizabeth Crum wrote at E!! True Conservative Story™, “here’s the real kicker:”
Specifically, the bill would give Treasury officials temporary authority to offer the GSEs an unlimited line of credit and to invest in the companies.
That is an unlimited line of credit from you and me.
So, to sum it up, rather than get out of the way and let a free market run things, Congress’s answer to the housing problem created by the government is to throw an endless stream of money at it and to create more government oversight.
In other news, the energy market crashed after the graves of our Founding Fathers were opened and electric generators were hooked up to their spinning bodies.
