By continuing to prop up the very institutions that begat the housing bubble, the federal government is choosing to re-inflate the market bubbles rather than reestablish our economy on more sound footing. This is what Mises meant when he explained how government intervention inevitably leads to more government intervention - middle of the road policies lead to socialism. This time it is costing taxpayers at least $200 billion in order to bail out Fannie and Freddie. Even worse these institutions are being nationalized meaning that socialism is to gain another victory in this supposedly free society.
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