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Nationalized housing

Not that the collapse of the housing market is the fault of the Bush administration; the bubble was inflated by Greenspan during the Clinton years (the dot-com boom — or, to you Democrats, the period of unparalled growth and prosperity you so fondly recall). Every boom has its bust, and Greenspan deftly responded to the collapse of the dot-com boom by lowering interest rates to unnaturally low levels, which kicked off the mortgage boom.

But the response by the feds this weekend to the collapse of Fannie Mae and Freddie Mac proves again there’s not much difference between the two major parties, both of which apparently believe that more government intervention, whether in the economy or in an uppity nation somewhere overseas, is the right answer.

I’ll take that back if John McCain promises to rescind this nationalization of half of the country’s $12 trillion mortgage debt.

What’s galling is that stockholders will get hosed while holders of debt, the largest of which is the government of China, will receive the full backing of the American government — i.e., the American taxpayer. One estimate of the cost from a source I trust runs $50 to $250 billion. To bail out China.

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