Dr. Frankenstein Turns Against His Monster

I'm not going to talk about the president's speech.  He is intellectually bereft, and perhaps the most economically ignorant president in the nation's history.  I will give him credit for pulling off a singularly unprecedented act :  Last night was the first time a sitting president kicked off his reelection with a campaign speech delivered to both houses of congress.  Kudos to President Obama!  Even FDR never dared to be so brazen, and the utter shamelessness of it was impressive.

On to some real news...

The federal agency that oversees the mortgage giants Fannie Mae and Freddie Mac is set to file suits against more than a dozen big banks, accusing them of misrepresenting the quality of mortgage securities they assembled and sold at the height of the housing bubble.  (NY Times)

This reminds me of when the elder George Bush took down Panamanian caudillo Manuel Noriega. The left snidely (if not inaccurately) pointed out that Noriega was a monster of US design, so ex-CIA Chief Bush was just cleaning up his own mess.

Don’t get me wrong. I want to see these criminals marched off to jail, along with the ratings agencies and the AIG crooks who insured them and then got billions in federal funds when the scheme collapsed. But the feds need to go a step further and put Fannie and Freddie in the docket as well. And while we’re at it, let’s put the FHA itself on trial. How much taxpayer money have they wasted? What exactly was their role in aiding and abetting all of this financial malfeasance?

A Dirty Cop Bring Down the Perp

Do you see what's wrong with the FHA filing suit?  They were in on this criminal enterprise! This is how dictatorships operate. Look to Russia or Venezuela for examples. The crony crapitalist government gets in bed with the private sector and they throw wild multi-billion dollar orgies at taxpayer expense. It’s all good during the fat times, but when the inevitable collapse occurs, the regime puts it's official uniform back on, including the tin badge, and arrests its fellow partiers.

So by all means, go after these crooks, but don’t stop at the private sector.  Take down the government crooks as well.  They were the criminal kingpins who hosted the parties.