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Source link: http://archive.mises.org/8478/the-private-part-of-the-mortgage-market-just-wasnt-working/

“The private part of the mortgage market just wasn’t working”

September 8, 2008 by

Yes, that was Joe Kernen on CNBC this morning. This morning guests included Henry Paulson of Goldman Sachs and the Treasury Department and former Treasury Secretary John “Snow”–and everyone was saying that the take over of Fannie Mae and Freddie Mac wasn’t a great thing, but a necessary thing. Really? Necessary for our economic relationship with China? Not a word on that.

I’m beginning to think that CNBC stands for “See and Be Seen.”

This whole episode is a great case study that demonstrates the danger of public-private partnerships and “privatization.”

{ 8 comments }

Person September 8, 2008 at 10:23 am

Well, there you have it, folks. The government admits it wants to take control of our private parts.

Thank you, thank you, I’ll be here all week. Well, actually, as long as anyone keeps saying stupid stuff about IP or global warming.

Larry N. Martin September 8, 2008 at 10:45 am

“Stupid stuff about IP or global warming”
Private parts
Woo-hoo!
And now for something completely different:

Inquisitor September 8, 2008 at 10:58 am

It’s Sachs! :)

Glen September 8, 2008 at 11:26 am

“The private part of the mortgage market just wasn’t working”

If that quote wasn’t so scary, I’d be laughing at the stupidity of the person who said it. Makes you wonder if the ‘leaders’ are really that stupid or just plain liars.

Texas Conservative September 8, 2008 at 11:30 am

Steve Liesman exciorated viewers earlier for not being realists on the question of capitalism vs. socialism. Paraphrasing…he said that we idealists that believe the US has a free market economy should have taken our heads out of the sand “years ago.” The gist of his message was that this is the way of the world, and we should all just accept it.

My other (cynical) observation regarding this Fannie/Freddie mess is that if Obama and McCain agree that the GSE’s should be nationalized, then it’s clear that nationalization is not the answer.

Bruce Koerber September 8, 2008 at 1:49 pm

Where’s the proof? How do we know that it is not the ‘interventionist’ part of the mortgage market that is not working?

This is a serious question?

Where is the evidence that any of these ‘economic spokespersons’ have done any work? I challenge them to show me the analysis!

Why do we accept the fanciful rhetoric of these political pawns without asking them questions? The propaganda of the unConstitutional coup has made people think that economics is something that the average person cannot understand, which only serves to strengthen their stranglehold on our Constitutional Republic.

The subjectivist economics of classical liberalism is basically cause and effect common sense with a keen eye to be on guard against the ego-driven interventionists. From this easily understood and naturally logical point of view the obvious culprit in the mortgage market is government intervention, used to redistribute wealth towards those who are a part of the unConstitutional coup.

Robert September 8, 2008 at 2:30 pm

It’s not that there’s no theories or data to support blaming the intervention rather than the market, it is simply that the majority of voting Americans want a simple analysis and the majority of popular media outlets are statist constructs.

The placebo is “intervention is good…”.

But that’s a little hard to swallow; there might be a “isn’t this communism/fascism/evil?” thought pop into a few people’s heads.

Thus, the water that eases down the pill is “…in this specific case”.

As far as diagnosing the exact cause – that’s just too confusing for the average voter – blame it on special interests, foreign oil, ___ policies of whatever major political party rivals yours, speculation, and the market…you know, all the things the non-financial news tells you are bad.

Dewaine September 8, 2008 at 2:48 pm

If only the Federal Reserve had been wise enough to purchase the ENTIRE STOCK MARKET in 1929, that Depression could have been avoided as well.

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