Where The Hell Is The Libertarian Outrage?

I’m torn.  I want so much to write here about this “experienced executive” V.P. candidate that doesn’t know how Fannie Mae/Freddie Mac work, but the takeover itself is more important.  Or is it?  Regardless, suffice to say that Mrs. Palin, who clearly didn’t know the material, made up an answer that dovetailed nicely with her ideological predispositions.  (Government bad/market good)

Why, exactly, are we bailing them out?  Those of us that bought homes within our means will be paying to shore up companies that profited, obscenely, from the greed and stupidity of the largely financially illiterate American home-buyer.  I’ll admit that this issue is way above my pay-grade (along with, when life begins) so I am open to be persuaded that this bailout is necessary.  Bottom line for me?  At the end of the money-trail…who benefits?  If its investors…tough.

So, financially astute readers…fire away.

And, yea, why aren’t the Libertarians all over this?

Had to add this:  (h/t Whites Creek Journal)

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18 Comments

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18 responses to “Where The Hell Is The Libertarian Outrage?

  1. The Missus

    That’s satire I can believe in.
    Apparently both Palins believe every sperm is sacred.

  2. This is my understanding, and I could be wrong, but this is how I understand–foreign investors had been investing in U.S. bonds, which was good for us because it gave us cash and kept the rest of the world working in dollars, but we kept lowering interest rates and so bonds, while attractive because they’re stable, were less attractive because of the low interest rates.

    But Freddie Mac and Fannie Mae were also considered fairly stable (because it’s real estate) and attractive because of the slightly higher interest rates and so countries began to invest in them.

    So, they cannot be allowed to fail now, because the shareholders are not individuals, but countries, and their failure would decimate the economies of countries with money tied up in them, and thus the global economy.

  3. democommie

    All dry discussions of fact aside, I will be somewhat mollified if they hang the top tier management, figuratively–or otherwise.

  4. Because if China calls in our debts to cover its investment losses, we’re fucked with a capital F. Also, as B says, bankrupting one’s trading partners is a non-starter.

  5. Am I the only one, though, who feels like we’re in the middle of a global economic warming, like we’re skipping from ice block to ice block and one day soon there’s not going to be any more ice to leap to? I mean, how much stuff can we bail out?

  6. democommie

    I’m working on a soylent green cookbook.

  7. Pingback: Who Will Bail Out The Bail Out? : Post Politics: Political News and Views in Tennessee

  8. Bridgett and Aunt B, yes, that much I knew, but where does it all end? Are we to be held hostage as taxpayers indefinitely? Do we skip through this financial maelstrom now, but leave our kids, and their kids, out unprotected? Like B said, we are skipping from iceberg to iceberg, hoping against hope that we won’t have to suffer any inconvenience along the way.

  9. Hit submit too soon. If other countries invested with the idea that they would profit, shouldn’t they accept risk as part of the deal?

  10. In theory they should, Mack. The problem is that so much of how the economy operates is based on expectations and perceptions. After the Great Depression, the government enacted regulations and created agencies that are supposedly focused on ensuring that this sort of failure doesn’t occur again. It was too destructive and too global in impact.

    Of course, various and sundry administrations have watered down the regulations and constraints over the years, but that’s been done by (let’s be generous) various internal political parties. Other countries don’t see parties running things. They see the U.S. as a single entity running things. If Fannie or Freddie collapse, the U.S. gets the blame and other countries withdraw their yen and pounds and yuan and whatever from investments here. If that happens, the Great Depression will be more like a Sunday picnic in the park.

  11. democommie

    Jim Voorhies:

    Granting all of that, when will the term “taking responsibility” or the notion of “accountability”, actually mean something in this country. The latest I read on the FM’s was that while the big shots will be out of jobs they will be eligible for “severance packages” ranging from $9-14M apiece. WTF? Not going to prison for their malfeasance and deliberate deceptions is more of a consideration than the bastards should be given.

  12. Jon

    Well, in fairness to your subject line —

  13. Well, most of the libertarian outrage over Fannie Mae and Freddie Mac was thirty years ago. It’s now like Social Security–an unstoppable force we warn about but are powerless to stop.

    As someone whose household is dependent on trade with China for income I realise that maintaining good relations with China is essential to ensuring that United States HAS a taxpayer base. So in that sense I view the bailout of Fannie Mae and Freddie Mac as essential to the continued operation of the United States.

  14. democommie: Acountability? What’s that? 🙂

    Golden parachutes are negotiated at the start and written into contracts. I, on the other hand, would be lucky to get a severalce check. If I thought I could get $15 mil by screwing up big time, I’d go proposition the HR director or something.

  15. BTW, it is possible that, as happened with the bailout of Chrysler back in 1979, the government could actually make money on this deal. There’s risk, naturally, and there’s no government behind the government to bail them out if it doesn’t work, but it is possible.

  16. democommie

    Mack:

    I think a little wingertroll is having fun over at MCB.

    Whoever he is, he left this comment.

    “Iscore another for democommie on 8 September, 2008 at 1:25 pm #
    I rule. I killed this blog just like NiT.

    Stupid Wingers. Whose laughing now wingers?”

    I mean, I suppose I could have written it but, even when I’m schizoid, I know the difference between who’s and whose.

  17. Who cares? No one reads that blog anymore.

  18. democommie

    Mack:

    Oh, I still check in from time and most of the comments I’ve seen of late are obvious spam. I think it’s hilarious that the same idiots who think that I’m a punk also think that I have the kind of power it takes to crush a blog. It’s hilarious.

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