Interventionism

Gears are rolling for the government to put together a rescue package for mortgage lenders Fannie Mae and Freddie Mac. Economics has never been my strong suit, but I find this a little frustrating and a little necessary at the same time. Normally, I'd resent the hell out of the government moving in and bailing out mortgage lenders or any businesses that get themselves into a mess via some shady practices- but sadly, with Fannie and Freddie, we ain't got no choice. They're just too damn big for the government to sit by and let sink in the name of laissez faire economic doctrine.

I'm sure economic purists and anti-Keynesians out there will be decrying this as a totally unnecessary intervention that flies in the face of capitalism. But, I think this is the kind of soft-touch interventionism the government should practice. Economically, I tend to hew to the notion that the less the government futzes about in the economy the better- governments tend to be overly bureaucratic and inefficient, so it's easier to let the market work itself. But: the government should mind the economy a bit and if Freddie and Fannie go down they're so big the economy will literally implode.

I don't like bailouts. But in this case, it might be a necessity and it's a perfect example of how the government should work: leave the economy alone, but intervene when it's necessary. Like now.