Senator Barack Obama and John McCain have both some out and stated that they support the conservatorship of Fannie Mae / Freddie Mac. Interestingly enough both have very close campaign ties to the lending giants.
John McCain has suggested a carved up privitization of the giants as many analysts have preffered for years. Commercial lenders welcome this approach with regards to more market competition.
Barack Obama, a sucker for the line “four more years,” has proclaimed that he wants a government garanteed, controlled, one foot in and out the door, privat-public hybrid that is remeniscent of the same mess the treasury is now in by taking on such an expenditure.
I beleive that McCain has the better opinion. It provides more free market competition and less tax payer resources. Obama’s plan could continue to encourage poor lending practices by garanteeing a babysitter from the government.
Obama did state that he disagrees with government bail out for high level executives. He has written a letter to treasury secretary Henry Paulson Jr. and conservator James Lockhart to make sure that executives that have so willingly taken care of Mr. Obama’s campaign, will not be looked after.
Both views, while very different, highlight a greater point than economics for us voters. Both of the candidates have very consistent rhetoric. McCain’s ideas about the giant are consistent with his actions in the senate. Obama’s are consistent with his anti-executive robin hood image.
