Government intervention to blame for economic woes
Unless you live under a rock, you may have noticed the United States is currently deep in the throes of an economic crisis. What caused this crisis? Well, it depends who you ask. Republican candidate for president John McCain blames corporate greed on Wall Street, while his Democratic rival Barack Obama denounces deregulation of the markets. For a race in which the two candidates are trying to differentiate themselves as much as possible, their solutions to this mess are surprisingly similar - more government intervention. Unfortunately, government intrusion in the economy is exactly what caused the financial crisis in the first place.In the economic heyday of the 1950s, the government created Fannie Mae and Freddie Mac to help young war veterans get home loans. These "government-sponsored enterprises" operated in an unusual gray zone between private businesses and government organizations: They were essentially mortgage monopolies established by the federal government. For years, Fannie and Freddie existed outside of government regulations on banks while enjoying privileged status as borrowers from the federal government.