Is George W. Bush A Socialist?
With the government about to take control of Fannie and Freddie, I have to wonder if we’re on the road to socialism. We are about to witness the largest financial bailout in our history. We’re talking about two entitites that either own or guarantee $12 trillion in home mortgage debt. These companies will be placed in what is being termed a “conservatorship”. The heads of each organization are expcted to step down.
The executives were told they and their boards would be replaced and shareholders value diluted, but the companies would be able to continue functioning with the government generally standing behind their debt, the New York Times said…
An emergency plan approved by Congress in late July gave Treasury the authority to offer an undetermined amount of credit to the two companies, or take an equity stake in them if they ran into trouble. The housing legislation signed into law by President George W. Bush in July requires the companies agree to a Treasury backstop.
The government will make quarterly infusions of capital, as needed. I know that if a Democratic president did this conservatives would fear for the Republic.Click here for reuse options!
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