We are so gonna be on the hook for this

Remember the S&L bailout in the ‘80s? A period of lax regulation and nonexistent oversight lead to massive failures in the Savings and Loan industry and the US taxpayer picked up the tab. The mortgage mess is looking a lot like that.

Shares of Fannie Mae and Freddie Mac continued a week of freefall on Wall Street today, abruptly losing nearly half their value as investors ignored efforts by federal regulators to reassure about the financial health of the companies and focused instead on the risk that a federal bailout might wipe out the value of their stock.

Important pillars of the nation's housing market, Fannie and Freddie's ability to weather the current downturn in the real estate market has been called into doubt this week on several fronts. With the value of the companies' mortgage-related assets falling and the costs of borrowing on the rise, the Bush administration has begun studying what to do if either requires a federal bailout.

This is what happens when we put the economy into the hands of supply-side disciples and anti-regulation absolutists. Ever since Reagan, these folks have “achieved” a record of budget deficits, defaults, instability and recession. How many times do we need to learn the lesson that this shit does not work? And McCain is offering more of the same. DO NOT WANT.