Fannie Failure Equals Failure in Privatization

The Federal National Mortgage Association (FNMA) commonly known as Fannie Mae was founded as a government agency in 1938 as part of Franklin Delano Roosevelt's New Deal to provide liquidity to the mortgage market.

Basically working men and women pooled their money (taxes) to help each other out in securing home loans. The sole purpose of the organization was to help working class citizens.

In 1968, FNMA was privatized because bankers wanted to get their hands on the money. Its purpose changed to making a profit and no longer for helping citizens. In good years it did good and the executives rewarded themselves generously. And now in hard times the executives still want their large rewards even though their company failed. Now they want the working class taxpayers to bail them out.

This is exactly what we can expect if McCain privatizes Social Security as he, and his wealthy banker friends, would like.

There is a place for capitalism and competition but it’s not in insurance like FNMA and Social Security. Insurance should be a pool of money set aside to help those of us in the working class that are less fortunate. There isn’t a lot of managing needed. We certainly don’t need middle-men (people) scraping off billions of dollars from the fund.

Now with satellite radio, we need competition. Isn’t it interesting that those that scream for privatization of Social Security to encourage competition are the same idiots that turn a blind eye on the monopolization of an industry like satellite radio?

I tried to use truthiness in writing this. If I have stepped on facts please let me know.