If FNMA is truly a profitable business on the open market then why did it have to be created as a government program in the first place?
FNMA is under investigation right now.
More background here.
If you carry anything away from the discussion, carry this one, solid fact:
The government would not feel the need to intervene with the market if it wasn't for the fact that they want to push something in a different direction than market forces would take it.
Government interference with economies is based on attempts to fake reality. Government entry into the banking and lending field is usually an attempt to create money out of nothing.
When a farmer borrows money from a bank, he pays it back, with interest, based on wealth he creates from his labor, skill, and capital. Real wealth is created in the transactions, and everyone profits.
When the government borrows money, it "pays it back" by taxing the people who loaned it to them in the first place. See the difference?
re: FNMA
The whole thread (28 posts)
- Ten Commandments Brought Up To Date
- Whoever wrote that has never been within fifty miles of running a real business. (n/t)
- Sole purpose of the capitalist is the transfer of wealth to himself
- heheheheh
- re: Ten Commandments Brought Up To Date