Fannie and Freddie

Eric at Classical Values telling it like it is, as usual:

Harsanyi goes on to make the case for privatization, and while I agree, the powers that be seem to be in near-unanimous agreement that privatization is a dirty word. That privatization is what caused the problem. Common sense would suggest it's the government guarantees; that when these large private sector entities know that the taxpayers will bail them out, they have no incentive to be responsible. Yet the only people who seem to be able to grasp this common sense notion are the ordinary middle class taxpayers who have to balance a checkbook and pay their bills -- precisely the ones whose money supplies the guarantee. In what adds insult to injury, the tax-eaters don't even seem to understand that the money they are eating comes from the tax payers. It's as if they think "the government" is another gigantic unaccountable entity with an unlimited supply of money.

One of the problems I have with McCain is that I doubt he sees it this way. I think he sees the role of the Feds as being there to ride to the rescue when an industry "to big to fail" takes a blow. If there is evidence to the contrary, I would surely like to see it.