Bob Barr’s campaign has released the following press release on the Federal Government’s announced bailout of Freddie Mac and Fannie Mae:
“The federal government is preparing to take over Freddie Mac and Fannie Mae,” says Bob Barr, the Libertarian Party presidential nominee. “Congress set up the taxpayers for big losses when it established these quasi-government agencies to subsidize the housing industry, and then earlier this year voted to approve direct federal support for them. Policymakers should learn from the latest financial disaster and say never again,” Barr argues.
Barr says the bailout alone could cost $100 billion or more, and blames Fannie Mae and Freddie Mac’s for its role in creating the overall subprime lending crisis that prompted Congress to approve a $300 billion bailout of the housing industry.
“First, government subsidizes an industry,” says Barr. “Then, after the industry crashes, government bails it out! The one factor that never changes is: the taxpayers lose,.
“The Fannie/Freddie bailout would be bad enough,” says Barr, noting it comes on top of the Federal Reserve bailing out the brokerage house Bear Stearns. “The automakers are lining up with their hands out for $40 billion in assistance. The federal deficit this year will run $400 billion, and next year’s red ink is likely to hit a half trillion dollars. That will inflate a national debt that already runs $9.5 trillion,” he adds.
“It is time to say no more. Fannie Mae and Freddie Mac need to be privatized and sold off. And Congress must stop treating the federal government like a national soup kitchen for businesses in trouble,” says Barr.
You certainly aren’t going to hear that from Barack Obama, and you won’t hear it from John McCain, the nominee of the party that claims to believe in individual liberty and economic freedom.