St. Elizabeth, Mythmaker

A mostly political Weblog.
Sept. 19 2008 6:15 PM

St. Elizabeth, Mythmaker

It's your fault for wanting to know the truth.

(Continued from Page 69)

P.P.S.: Krugman also writes, boldly:

You could say that the Fannie-Freddie experience shows that regulation works.

You could say that--unless you read the remainder of Krugman's column, which notes the inadequate capital requirements imposed on Fannie-Freddie because 

the companies' management bought off the political process, systematically hiring influential figures from both parties.

P.P.P.S.: Is this risk of corruption any less with a) "purely public enterprise" than with b) a public-private hybrid like Fannie Mae or c) a purely private enterprise (like, say, the Blackstone Group)? Interesting question. I would think well-connected liberal operatives like Johnson would be capable of at least perverting a regulatory regime even if they headed a 100% federal, civil-servicized Fannie Mae. (Most "regulation" is in category (c) of course, where the risk of corruption seems somehow undiminished by the triumphant "Fannie-Freddie experience.") ...

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Update: See semi-clarifying semi-correction. ...  2:00 P.M.

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Didn't subprime poster villain Angelo Mozilo do Barack Obama a big favor by compromising Obama's initial VP vetter, Jim Johnson, with favorable loans, causing Johnson to step down from his position? How bad would today's headlines be for Obama if Fannie Mae fatcat Johnson was still heading up his vice-presidential search effort? ... 10:45 P.M.

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A reader emails:

People seem to think it's somehow a stroke of political genius that Sen. Obama is taking Sen. Hagel with him on his trip to Iraq.  But why doesn't this highlight Obama's lack of judgment on the surge, by bringing along the man who considered it a catastrophically bad idea?