Systemic Risk and Fannie Mae - WSJ.com

Systemic Risk and Fannie Mae - WSJ.com

An excellent article.

Too bad the folks in Washington today have another agenda that is only exacerbating the risks to the economy.

From the comments in the Wall Street Journal, it would also appear that many readers believe the bankers rather than the government to be at fault with today's shifting of business and jobs outside of the US.

They should look at articles such as that in today's paper where Pittsburgh wants to put a tax on college tuition to support the generous benefits wrung from the city by its unions. There is nothing there that sees anything wrong with the benefits agreed to - in the same way the UAW saw nothing wrong with riding GM to the rail with traditional union demands and work rules even though the company was clearly hemorrhaging last winter and living on a government loan.

As we used to learn in school, before you can solve a problem, it has to be identified. As with the lack of identifying a problem with Fannie and Freddie by eminent economists and Congress, so today it would appear that people want to lament a loss of jobs but prefer to ignore and are afraid to ask serious questions of causality.