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This country may participate in capitalism on the way up, but the rules have changed on the way down. Socialism, in the form of massive government bailouts of private enterprises, is the prevailing theme of the day. The Freddie Mac (Fraudy) and Fannie Mae (Phony) bailout news story is everywhere, so I won’t add my own summary here. But I will provide links to some noteworthy worthwhile reading:

• Statement by Secretary Henry M. Paulson, Jr. on Treasury and Federal Housing Finance Agency Action to Protect Financial Markets and Taxpayers – Take note of paragraph 11 quote from Paulson,  “I have long said that the housing correction poses the biggest risk to our economy. It is a drag on our economic growth, and at the heart of the turmoil and stress for our financial markets and financial institutions. Our economy and our markets will not recover until the bulk of this housing correction is behind us.”  My question to Paulson is simply where was he during the huge and unstable run-up in housing prices that caused all the mess we are now seeing, and are likely to see for a long time to come?!?!?!
• New York Times summary of takeover
• Bloomberg interview with Poole, estimating $300 billion loss to Government and taxpayers
• Big Picture summary of 10 key points of bailout
• First look inside Fannie / Freddie bailout plan

Also check out these books:

Bailout: What the Rescue of Bear Stearns and the Credit Crisis Mean for Your Investments by John Waggoner

Bear-Trap: The Fall of Bear Stearns and the Panic of 2008 by Anonymous

Too Big to Fail: The Hazards of Bank Bailouts by Gary H. Stern

From Buildings and Loans to Bail-Outs: A History of the American Savings and Loan Industry, 1831-1995 by David L. Mason

Fannie Mae And Freddie MAC: Scandal in U.S. Housing by