Bush's "New Deal"

Thanks to FDR, many Americans have been seduced into ignorant bliss, knowing that regardless of how stupid they are, their benevolent and loving government is there to bail them out of trouble. FDR's "New Deal" ushered in the era of the modern welfare state, which was the genesis of current government dependency, and on which far too many people depend today. Well, Bush is about to include the housing markets under this nanny-state umbrella of protection.....

World markets are poised for a major relief rally today after the US Congress met in a rare weekend session to pass the most far-reaching rescue package for America's financial system since Franklin Roosevelt's New Deal.

US Treasury Secretary Hank Paulson has helped engineer the rescue of Freddie and Fannie
The emergency bail-out gives the US Treasury sweeping authority to inject capital into the giant mortgage lenders Fannie Mae and Freddie Mac, which together own or guarantee half the country's $12 trillion stock of home loans.

The ceiling on the US national debt has been lifted by a further $800bn, giving the Treasury almost unlimited resources to prop up the two lenders.

In parallel, the Federal Housing Authority (FHA) is to guarantee up to $300bn of fresh mortgages for struggling homeowners trapped with soaring loan costs.


There is not one chance in a million that this disastrous bill will ever be rescinded, because you see, it places the entire mortgage market under the watchful eye and control of corrupt elected officials. Now taxes will have to be raised on those of us who are smart enough to live within our means, to pay for the stupidity and recklessness of those who aren't. And worse, now there's no downside when mortgage companies issue loans to people who can't afford to pay for them. The taxpayers should not be in the business of propping up corporations who employ bad business practices. The housing market needs to correct and that's all this is. That it's an election year and craven politicians of both parties want to buy as many votes as possible for their party explains it all.

I was complaining this morning about this bailout and McCain's cap-and-trade scheme for CO2 emissions and my wife suggested I move to Idaho or Montana where borderline anarchists like me are welcome. If the Unabomber's shack is not rented for the winter, maybe I will.

Superimpose Bush's mug on this picture of FDR creating the modern welfare state, and that'll be the only real difference between the two, since both executives will have been responsible for record increases in the size and scope of government control of and intrusion into our lives.