Here it is: The mother of all government bailouts
By Michelle Malkin • September 8, 2008 10:32 AM
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What I wrote in July:
I’ve long warned of the inexorable bailout frenzy in the wake of last year’s stimulus-palooza. The Fannie/Freddie rescue will make the Bear Stearns bailout look like chickenfeed.
Well, welcome to the MOAB nightmare come true.
Taxpayers will be on the hook for $200 billion — with a “B” — in capital and credit lines to both Fannie Mae and Freddie Mac. And that’s just the starting estimate. When do government projections ever get it right? And when do they ever overestimate the cost to taxpayers?
Both parties will twist themselves in semantic pretzels to argue that this isn’t a massive, socialist bailout scheme. Cut the bull. It walks and squawks like one because it is one. This is more of the same profit-side, crony capitalism and loss-side socialism. Who benefits? Liberal corruptocrats like Jamie Gorelick.
And what do we get for our money?
The fundamentals of the housing market will not change. We’ll pay for government intervention to keep home prices artificially high, while helping the two federally-sponsored enterprises rescue some of the nation’s most toxic loans.
When I called for the “Suck It Up” solution to the housing crisis, I didn’t mean that government should suck up our money. Crikey.
