BAILOUT: Yes or No?

[Crazed Rabbit]

Jolt -no, it hasn't.

Fannie an Freddie were created (in the 1930s) by the government and privatized, but with extensive privileges, in the 1960s (Or 1970s? Not sure).

They were not free market institutions, but large government intrusions into the market. They were encouraged by the government to encourage bad lending policies and so they encouraged this huge mess of sub-prime loans by buying up just about any crap loans.

Democrats defeated measures in 2005 that would have curtailed those inherently risky activities.

Even now, we see the free market buying up failed firms.

CR