A Bit of Homer Simpson Economics
From today's Wall Street Journal:
The best outcome for the administration is that Fannie and Freddie manage to issue new stock and the balance-sheet fears subside. But if capital raises don't get done at the right size, the administration might have to do something drastic like take over Fannie and Freddie.
This list is starting to get pretty long. Nationalize Freddie and Fannie. Nationalize Citigroup. Nationalize General Motors and Ford. Nationalize the airlines. Nationalize health insurance. Nationalize energy. Nationalize homeowners.
This is starting to remind me of that great line from The Simpsons: "Beer, the cause of—and the solution to—all of life's problems." Government, the cause of—and the solution to—all of life's problems. What's really amazing here is that this sudden love of bigger and more intrusive government, at least by the media and Wall Street, comes at the same time both the White House and Congress are held in record low esteem.
Tags: economics | Fannie Mae | Freddie Mac
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Reader Comments
definitions re Homer Simpson
I fail to understand all the fuss about "recession". It seems plain to me, though granted i'm no expert, that there is no recession now. The word should be "DEPRESSION'. The only difference between the last 7 years and now is CREDIT. Can you imagine what would happen to the economy if everyone called in the outstanding credit? Thank you G.W. Bush and our "caring" Congress.
Want to solve the Health Care Crisis? Congress would do something about it fast enough if we just took away the health benefits that we provide for them and let them and their families try to live without it. We, in growing numbers, cannot afford it for ourselves but we pay for theirs. Where"s the incentive for them? From the Insurance Companies that's where. Plus, they really should stop believing "WE" are stupid. Look at the candidates they have chosen for us to chose from, DEAR GOD we are soooo in trouble - and i thought it couldn't get any worse.
jsthorne comment
Interesting, from a clinical standpoint: the frst comment, by jsthorne, had nothing whatsoever to do with the article. Nothing at all. Anyway, thanks to the article author for the Homer quote and for its use as a hook for identifying a troubling trend. What if we let let GM and the airlines fail, left home borrowers to their predatory loan lawsuits and extended no further aid, nationalized the market for health insurance (and not insurance itself), and diminished the govenmental distortions of alternative fuel markets (i.e., stop subsidizing ethanol, lower barriers to new refinery and nuclear plant construction)? The result? Cheaper and cleaner energy, more efficient air travel, enhanced credit for genuinely able home buyers, and better cars.
jsthorne comment
Interesting, from a clinical standpoint: the frst comment, by jsthorne, had nothing whatsoever to do with the article. Nothing at all. Anyway, thanks to the article author for the Homer quote and for its use as a hook for identifying a troubling trend. What if we let let GM and the airlines fail, left home borrowers to their predatory loan lawsuits and extended no further aid, nationalized the market for health insurance (and not insurance itself), and diminished the govenmental distortions of alternative fuel markets (i.e., stop subsidizing ethanol, lower barriers to new refinery and nuclear plant construction)? The result? Cheaper and cleaner energy, more efficient air travel, enhanced credit for genuinely able home buyers, and better cars.
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