Category: Random News

Fannie Mae Eases Credit To Aid Mortgage Lending – New York Times:

Fannie Mae, the nation’s biggest underwriter of home mortgages, has been under increasing pressure from the Clinton Administration to expand mortgage loans among low and moderate income people and felt pressure from stock holders to maintain its phenomenal growth in profits.
[…]
Fannie Mae is taking on significantly more risk, which may not pose any difficulties during flush economic times. But the government-subsidized corporation may run into trouble in an economic downturn, prompting a government rescue similar to that of the savings and loan industry in the 1980’s.

hat tip Cafe Hayek

Capitalists, Capitalism, and the Siren’s Song of Stability:

The desire for stability and predictability has been the calling card of dirigisme regimes since the dawn of capitalism, whether they called themselves “socialist”, “fascist”, or just plain “interventionist.” It is but a thinly disguised power grab by those who own the means of production, and who will profit at our expense, rather than profiting by serving us better. “Stability” is a siren song that we must do our best to ignore, lest we enable them make an even bigger mess than they already have.

Sometimes Bobbing and Weaving Just Isn’t Enough:

McCain and Obama are tripping over one another to claim they have a PLAN. Everyone wants a plan to fix the financial markets. But the bottom line is that we do not need a government plan, we need a free market unhampered by government intervention. Instead, we are going to get government control, budget deficits and debt, and inflation in double-digits as the government attempts to pay for their inept policies that fueled the current and future crises.