BuckeyeBlog

This article via Glenn Reynolds is a nice one about Freddie and Fannie. I’ve been being warned about this since I started as a newspaper reporter in 2000 for a small business paper. It’s a bit tricky; both that professor that bent my ear and Bainbridge are at risk of the stopped clock scenario; they’re right twice a day, etc. (How’s that for an anachronism).

The real issue Bainbridge touches on at the end: Freddie and Fannie can go to pot, as people have been predicting for 20 years or more they would. What’s really going to happen, though, is that with all the nonsense about Medicare, Medicaid, Social Security and a list that is literally endless, since our great politicians, Democrat and Republican alike, want to add to it every day, the American government itself is going to be recognized as a fraudulent bankrupt.

It’s not an if. It’s a when.

“Doctors have complained for years that Medicare payments have failed to cover rising costs.”

Apparently some fool built fiscal responsibility into the Medicare program. Formulas require a cut in payments whenever the budget is blown, which is, let’s see, every period it’s measured. Or so this article implies, anyway.

Then Congress rushes in, ever the hero, and takes firm action. It waives the fiscal responsibility requirement, so everyone can pretend there’s no problem.

As Father PJ says, if you think health care is expensive now, wait ’til it’s free.