Monday, September 8, 2008

Palin The Clueless Barracuda On Fannie Mae And Freddie Mac

Republican vice presidential candidate Sarah Palin has a unique perspective on the government takeover of the nation's largest mortgage finance companies, Fannie Mae and Freddie Mac.

The Alaska governor stated, “They’ve gotten too big and too expensive to taxpayers. The McCain-Palin administration will make them smaller and smarter and more effective for homeowners who need help.”

Newsflash for Ms. Palin: Fannie Mae and Freddie Mac are privately held. They have never been financially supported by taxpayers. Now taxpayers face the prospect of bailing them out at a price tag that the Congressional Budget Office estimated at $25 billion–a figure that one senator anonymously called "optimistic."

Dean Baker, co-director of the Center for Economic and Policy Research, said, "You would like to think that someone who is going to be vice president and conceivable president would know what Fannie and Freddie do. These are huge institutions and they are absolutely central to our country's mortgage debt. To not have a clue what they do doesn't speak well for her, I'd say."

I'd say that these are understatements from Mr. Baker.

We already knew about Palin's foreign policy credentials, based on the fact that "Alaska is next to Russia" (see my post, 9/6/08). Now she's made apparent her economics expertise.

Rick Davis of the McCain campaign recently explained to Chris Wallace of "Fox News Sunday" why Palin has been kept away from the media since the Republican convention: "...until at which point in time we feel like the news media is going to treat her with some level of respect and deference, I think it would be foolhardy to put her out in that kind of environment."

Nonsense. Davis knows very well why the McCain camp is so skittish about putting Palin out there. "The Barracuda" simply hasn't been tutored enough and will be eaten alive if questioned in "that environment."

John McCain already admitted that he didn't know much about economics. His recent foreign policy gaffes raised doubts about how much he knows about international affairs (see my post, 9/6/08). Perhaps McCain made an appropriate choice for a running mate after all. With comments like Palin just made, she's sure not to show him up.

No comments: