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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (88212)	10/30/2007 3:42:50 PM
From: Wyätt Gwyön	Read Replies (1) \| Respond to of 110194

Grant has a pithy phrase: "Socialism for the rich."

To: CalculatedRisk who wrote (88212)	10/30/2007 4:07:31 PM
From: Mike Johnston	Read Replies (3) \| Respond to of 110194

The definition of "socialism" that you provided is correct, it is a textbook definition of the term. I have been referring to "socialism" and "socialism for the rich " to better illustrate the situation where the government is excessively involved in the housing finance industry ( GSE's) as well as to many aspects of the current economic system that would be common to socialist countries: - government sponsored bailouts and support of money losing enterprises - proposals of introducing aspects of socialism in the housing market to correct previous policy mistakes - rampant cronyism, fraud and corruption - economic propaganda, fraudulent inflation reporting. - lack of transparency - excessive issuance of money - looting of public assets by public officials I think very few people would argue that US housing finance system is not quasi-socialist.