Grab some coffee, get your newspaper, and really let the Fannie and Freddie news wash over you. Do you remember the election of 2000 and 2004? Weren we not promised conservative leadership? Does anyone even know what that means? Spending more money than you have, even in the name of defense spending, is not conservative. Dropping the Fed Funds Rate below the rate of your understated inflation number is not conservative. Continuing to publishing non conservative economic numbers, cheerleading the economy and encouraging the little guy to borrow and spend while you attend fund raisers and tell the truth about credit crisis when you think nobody but your invitees are listening is not conservative.

 

Our conservative leadership is nationalizing a good piece of the mortgage debt today. The bill for this bailout has yet to be determined, and will become more clear when we reach a housing bottom in 2010. Every cheerleader about the power of free markets and the strength and resilence of our over leveraged banking system owes us an explanation. Pundits on tv and on every "conservative" blog should be forced to note the catestrophic collapse of the system prior to pumping any faux market rallies and big money quiet equity sales into supposed strength. The "used to be lender of last resort" Federal Reserve TAF pumps badly needed funds to the banking sector while the treasury administers CPR to the mortgage markets, and the experts claim the worst is behind us. I have not started drinking yet, but didn't we just bailout two private organization that continue to claim they are well capitalize? Perino et al just told me everything is ok, so why the doubletalk? Is this the new normal behavior of conservatives? Are work camps being planned, and could I call this a renovated new deal? Keep bashing Obama, but he could never deliver socialism this effectively; he is far too inexperienced and poorly connected to manipiulate markets this well. I can't figure out how to not get more socialism when republicans make the democrats look like capatilists.

 

So this week, when watching Larry Kudlow's show, stand on your financed couch and yell "Free Market Profits and Socialized Losses are the Best Path to Prosperity". Long Live Goldilocks!