For years I have read and applauded the Wall Street Journal's editorial page for warning of the dangers inherent in Fannie and Freddie, and the looming crisis. Events have proven their analysis of a politicized market for mortgages correct.
How ironic, and sad then, that these same editors should now double down their hard won credibility on Henry Paulson's massive attempt to re-politicize the marketplace for mortgages. We're not talking a modified Paulson plan. We're talking first ballot Paulson.
By all other responsible reporting in the free-market media, we know that a) every official in Washington is saying privately this "emergency measure" is a piece of garbage legislation, and b) they have no idea if it will work.
But hey, the Journal reasons, we need to "calm" the markets.
The "markets" are made up of moral agents; people, who now want to be bailed out for their recklessness. Whether or not it was encouraged by the government, that is the bottom line. If they can't "calm" themselves, perhaps they should find other lines of work.
The Journal, in my mind at least, has destroyed all of the credibility it has created over the years when it warned against Fannie and Freddie -- so badly is it now in the tank for, one can only reason, one of their own, Henry Paulson.