How else can one respond to the government’s takeover of Fannie Mae and Freddie Mac?  I’m sure our resident socialists will be happy (or at least they would be if anyone but Bush had done it), but this is unbelievable.  Where the hell is Bush’s constitutional authority to take over these companies and assume such massive debt?  And even better, according to the LA Times:

Domestic reports indicate that China holds about $376 billion of Fannie and Freddie debt, Cao said, “so if those two companies went bankrupt, with all the securities that China’s central bank and the foreign exchange bureau hold, they could also go bankrupt.”

He said China’s central bank’s capital amounts to just $3 billion to $4 billion, after huge losses from the falling U.S. dollar and housing market. “I believe the central bank will definitely decrease the proportion of dollars” that it holds in the future, Cao said, echoing sentiments across Asia.

Tim Condon, chief Asia economist for ING Financial Markets in Singapore, thinks stock and bond markets in Asia, excluding China, will likely be big beneficiaries of the Fannie-Freddie rescue plan.

All the more reason to let them fail.  China’s purchase of these bonds fueled the bubble, so China should lose when the bubble bursts, not be bailed out by people (U.S. Taxpayers) who have been paying ludicrous prices for housing brought on by cheap debt, never-mind the increased property taxes.  That’s called Capitalism — you places your bets and you takes your chances.

But no, we have to bail out not only the idiots that took out adjustable rate mortgages when interest rates were at all-time lows (where did they think the interest rates were going to go, anyway?), but we also have to bail out the idiots who lent money to people who were taking such loans because they could not afford the higher interest rate of a fixed-rate mortgage.  When failure has no consequences, behavior gets riskier and riskier.  Actually, that’s wrong, because there is no risk anymore!  The risk is taken on by the government (taxpayers)!

I have to say it again: Holy sh!t.