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Fannie Mae and Freddie Mac to be nationalized

By clock on September 6, 2008.

Control of industry by government? I though these guys were against socialism.

Ed Cone:

I've been thinking about a newspaper column on "socialism." I put the word in quotes, because the subject is bogeyman scare-word "socialism," applied to any government program or tax policy opposed by the epitheteer, not the actual, government-control-of-industries definition.

Chris Bowers:

The problem I have is with the incredible cognitive dissonance surrounding "big government" in our national political discourse. Even as we have reached national consensus on nationalizing industries, which is the literal definition of socialism and big government, politicians of every party keep talking about "small government" as though it were a virtue. I mean, the day after the Republican convention, which included countless attacks on big government, the Republican administration goes out an nationalizes a major industry. It will probably be done in the corporate welfare style typical of American government--privatize the profits, socialize the risk--but it is still nationalization.

Related: I Want Bigger Government!

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I recall that when our own glorious leader nationalised Northern Rock (a crime for which our grand-childreo's children will still be paying), they went to extraordinary lengths to avoid using the 'n'-word.
And you're correct: They only nationalised the losses.

I don't understand that at all really. I have no real objection to nationalising companies (provided they're paid for rather than just seized) as it's not as private companies ever do a spectacular job of anything beyond lining exec and major shareholder pockets.

But to "part-nationalise" whilst outsourcing the profits to random contractors just seems lunacy of the highest order. Either take the company over or don't, don't prat about in some sort of half way house where they get paid and you foot the bill.

I'm not surprised at how "socialism" is a dirty word in the US though. This is afterall the same country whose politicians constantly preach to the rest of the world about freedom whilst cursing those damnable liberals.