In the greatest event of interventionist economics since the breakup of Standard Oil in 1911, The U.S. government announced on Sunday that it was taking control of troubled mortgage finance giants Fannie Mae and Freddie Mac, in its latest effort to shore up the slumping housing market.
Is this the end of the “Free market” ideals on which the USA was built?
Is a socialist interventionist model only around the corner for the USA? Can we credibly now say that our model is better than what was proposed by Marx and adopted by many countries leading to the Cold War.
Surely the US governmant can’t intervene in the market to this extent and credibly maintain sanctions against Cuba?
We believe in the free market! A correction stopped in this manner just leads to a delay of the necessary pain.