Another good backgrounder from CNBC. This one is about privatizing Freddie and Fannie, returning them to the way they were in the lead-up to the 2008 Financial Crisis. It’s a solution in search of a problem — a problem that privatizing would seem likely to create.
Listen to the hedge fund manager who’s looking forward to the “most pro-growth, pro-business, pro-American” administration. He’s expressing the same mindset that brought the financial markets to their interconnected knees in 2008.
The two biggest mistakes Obama made were at the very start of his first term. One of them was his failure to punish the investment banks. The other was the industrial policy called the HITECH Act, that artificially stimulated the market for medical information software.