Fannie and Freddie are the neo-liberal’s fault, and we should shout about that

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The First Post notes:

One of the more admirable aspects of the Paulson bail-out is the elimination of lobbying by Freddie Mac and Fannie Mae. Over the past decade, the two firms spent over £100m paying Washington lobbyists to stave off closer government scrutiny of their activities. The politicians who succumbed to this lobbying, Democrats and Republicans alike, escape scot-free.

It is a shame the government does not go further and actively seek to recoup that money on behalf of the taxpayers now footing the bill for the firms' excesses.

Let's be clear: this lobbying was part of the neo-liberal agenda of the capture of the state for the benefit of a tiny minority, with intent that their activity remain hidden from view.

This was the Reagan / Thatcher agenda.

This is the fault of the Republican / Conservative parties. It is they, with their policies of economic liberalisation and light regulation (promoted by the Tories in the UK until a year ago) who should be carrying the can.

But as Larry Elliot says in the Guardian this morning, they aren't because :

neither Barack Obama nor Gordon Brown seem willing to seize the social democratic moment. That's dumb politics. It means that what should be a crisis for the right has become a crisis for the left.

I agree.

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