PrintOctober 2, 2008
Fannie/Freddie and the Stealth Welfare State
Back in the good old days the US used to spend big money on secret defense projects. And no wonder, for in 1960 defense and the military industrial complex ate up 10 percent of GDP. It was easy to find money for the odd U-2 spy plane or the granddaddy of all "black" projects, the Mach 3 spy plane variously known as the A-12, YF-12, and SR-71 Blackbird.The trouble with secret programs is that there is no public accountability. You can spend billions of dollars on some brilliant idea and have nothing to show for it. The Mach 3 spy plane worked, probably thanks to the brilliance of Kelly Johnson, head of the Lockheed "skunk works." But it cost a fortune to develop and a fortune to operate. Secret defense programs have their place, but surely it is wrong to create secret social programs. The meltdown of Fannie Mae and Freddie Mac demonstrates why. Everybody thought Fannie and Freddie were boring old government-sponsored...(Read Full Article)
