In his Friday column my Freeman colleague Sheldon Richman takes a look at the big bailout of Fannie and Freddie. Whereas the NY Times has called the bailout “an extraordinary intervention in private enterprise,” Richman shows that these GSEs (government sponsored enterprises) are completely alien to private enterprise. (The Times simply won’t ever admit that government meddling has bad economic consequences.)
Fannie and Freddie need to be taken off federal support and allowed to sink or swim on their own. We also need to end all governmental intervention in the housing market.
