Has the US gone too far? Why aren’t we bailing out the homeowners?
Has America created its own variety of communism with the U.S. Treasury Department’s bailout of two beleaguered government-sponsored enterprises (GSEs), Fannie Mae (NYSE:FNM) and Freddie Mac (NYSE:FRE)? According to Rogers Holding CEO Jim Rogers, the answer is yes.
“America is more communist than China is right now,†Rogers told CNBC Europe’s “Squawk Box Europe†September 8. “You can at least have a free market in housing and a lot of other things in China. And you can see that this is welfare for the rich. This is socialism for the rich. It’s bailing out the financiers, the banks, the Wall Streeters.”
The Wall Street Journal notes the mortgage giants had $170 million in lobbying bills the last decade and spent $3.5 million on lobbying the first quarter of this fiscal year.
