Think Freely Media presents Common Sense with Paul Jacob

The New York Times wonders how “home buying [might] change if the federal government shuts down the housing finance giants Fannie Mae and Freddie Mac.” Despite vague agreement that misguided government policy somehow encouraged short-sighted, irresponsible conduct, many want government to keep it up.

It’s supposedly “well understood” that Fanny and Freddie “misused” government’s support to back “millions of shoddy loans.” Shoddy how? Shoddy because awarded to high-risk debtors on terms impossible without the government’s easy credit, subsidies, regulations, exhortations and bailout net. Many of the loans would not have been made by creditors obliged to consider not only potential profits but also all the actual and potential costs, without government interference.

In the article’s very next paragraph, however, we learn that although the consequences of “misused” government support for untenable loans are now “well understood,” there’s a “much more divisive question” now in play: “whether the government should preserve the benefits that the companies provide to middle-class borrowers, including lower interest rates, lenient terms and the ability to get a mortgage even when banks are not making other kinds of loans.”

Huh? You mean, many politicians and beneficiaries of government largesse are “divided” over whether a policy of destructively encouraging irresponsible conduct should be clung to with only cosmetic, if any, changes — even though this policy sank the economy?

Scavengers picking carcasses may not care about the long run. But the rest of us should.

This is Common Sense. I’m Paul Jacob.

By: Redactor

2 Comments

  1. Dennis says:

    The 1960’s people who were counter culture are now the one’s in the seats of power in America. The 1960’s people were about 20 years old, now, they are about 60+ years old. That generation of Americans are the most EVIL generation that America has ever seen. Parents who said “my kid can do no wrong”, who said it is ok to “stop being a moral person” are some who are responsible for what we are reaping now. It is those same people who believe that Islam is a religion because Islam says so. Islam is not a religion, it is a social, governmental, power grasping policy whose God is death, murder, killing, subjugation of women and one which makes death a virtue. It is the exact opposite of what all other true moral codes contain. The Founding Fathers said “A nation that is self governing cannot succeed in an amoral society”. America has become an amoral society.

  2. Drik says:

    February 2011 deficit_223 billion (that’s 223 billion more spent than was taken in in taxes)

    Interest on the debt paid in 2010_ 207 billion.

    Amount that spending is going to go up with Presbo’s new budget_25%

    Amount of yearly spending that the Republocrats want to cut_61 billion
    Amount of yearly spending that the Dhimmocrats want to cut_6 billion

    The amount of spending cuts that the Repubs are proposing_2%

    Unsustainable, that’s what you are
    Unsustainable, though near or far
    Like a burden of debt that clings to me
    How the thought of you does things to me
    Never before has federal debt been more…

    Unconscionable.

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