A down day?

Because of of the financial problems of Freddie Mac and Fannie Mae, the futures are down substantially this morning.

The issue. Should the government nationalize Freddie Mac and Fannie Mae?

We are the bastion of the free market system (supposedly) and yet we want the government to take over a huge part of the financial system.

What a momentous change in the way we think!

What makes matters worse is the total vacuum in leadership at the Fed and Treasury. The only thing they can say is that they need more power and more resources.

This is how democracies change from a free market system to a social-democratic system. There is no way to stop the process as we move from crisis to crisis. Until we reach a gridlock as in Europe.

Maybe the form of government is the real advantage of China. As a successful businessman told Koppel, the Chinese government can be trusted and provides stability.

There is no doubt our country is going through momentous changes. Let's keep our fingers crossed.

More, much more when you subscribe to The Peter Dag Portfolio on https://www.peterdag.com/.

George Dagnino, PhD
Editor, The Peter Dag Portfolio
Since 1977