'Crony' Capitalism Is Root Cause Of Fannie And Freddie Troubles

BY TERRY JONES
INVESTOR'S BUSINESS DAILY

Posted 9/22/2008

In the past couple of weeks, as the financial crisis has intensified, a new talking point has emerged from the Democrats in Congress: This is all a "crisis of capitalism," in socialist financier George Soros' phrase, and a failure to regulate our markets sufficiently.

Well, those critics may be right — it is a crisis of capitalism. A crisis of politically driven crony capitalism, to be precise.

Indeed, Democrats have so effectively mastered crony capitalism as a governing strategy that they've convinced many in the media and the public that they had nothing whatsoever to do with our current financial woes.

'Crony' Capitalism Is Root Cause Of Fannie And Freddie Troubles