Instead of moving to put FM/FM into a more easily understood model–either nationalizing them, or privatising–they’re making the GSEs even weirder, and of course, piling on more debt.

It’s time for Congress to bite the bullet: nationalize them, or take them private. But keeping pet companies on a leash so that you can use them as a sort of housing market slush fund, while pretending that the liabilities you thereby create don’t really affect the government, is the kind of thing one expects to see in a banana republic, not a free and prosperous nation.

I sometimes think that our political class would prefer a banana republic, as they’d be able to steal more and lord it over the common folk to a greater extent. And then there’s the bill on oil speculation:

The first thing I think is that my liberal friends should stop saying their party is more credible on economic issues. Because this is even stupider than McCain’s doubling down on the gas tax holiday–and McCain’s gas tax mania is plenty stupid. At least McCain’s gas tax manipulations won’t actually do something except give a small amount of additional money to oil companies and loathesome governments. This monstrous bill, on the other hand, might actually do some damage.

As the song says, “They’ll turn us all into beggars ’cause they’re easier to please.”