Social justice was the basis for Social Security when it was established in the 1930s and later for Medicare/Medicad. Both programs are insolvent.
The debate about what to do with either or both will not even begin until next year. It is useful to keep in mind that the two legislators, Rep. Barney Frank and Sen. Chris Dodd, who have defended Fannie and Freddie for years, are the authors of the new financial reform bill. The foxes have been in the henhouse for a very long time.
Conservatives think that both Fannie Mae and Freddie Mac should be put out of business and that mortgage loans should be a fully private market enterprise. This alone would likely guarantee that a future financial meltdown regarding mortgage lending would be avoided. A trillion dollars or even several hundred billion dollars is too high a price to permit what has occurred to occur again.
When the new, expanded government reforms kick in, there is no telling what effect they will have on the economy, but they are unlikely to be good. Believing anything the government has to say these days is a very bad idea.
© Alan Caruba, 2010