Fannie and Fred were “government sponsored enterprises” which means heads they win, tails you lose. If they make money stockholders, creditors and Fannie and Freddie employees – some making millions annually – get the benefit. But now that mortgages have hit the skids, with mounting losses, the taxpayers potentially face trillions in exposure. This is because there is an “implicit” (read “actual”) government guarantee of Fannie and Freddie’s obligations and both are now too big to be allowed to fail. This is called the “bailout phase” which will probably lead to a bigger bubble in the future.

Lost in this immense, complex mess is the root problem most people are missing: the government is gradually becoming the guarantor of seemingly every important aspect of American secular life, creating incentives and bureaucracies that cause failure and invite fraud.

Oh yeah? Well, maybe it never occurred to you that Fannie Mae and Freddie Mac are people too, huh?

Lindsay Lohan Blasts Palin on Blog

Lindsay Lohan and her all-but-confirmed girlfriend Samantha Ronson are the latest Hollywood celebrities to take aim at Republican vice presidential hopeful Gov. Sarah Palin, bashing the candidate on homosexuality and other issues Sunday on Lohan’s MySpace blog.

“I really cannot bite my tongue anymore when it comes to Sarah Palin,” Lohan writes, urging people to vote for Sen. Barack Obama. “Is it a sin to be gay? Should it be a sin to be straight? Or to use birth control? Or to have sex before marriage? Or even to have a child out of wedlock?

Well, that’s it!! We’re finished!! You know when the dems have locked up the Lesbian, cocaine addicted, alcohol dependent, talentless, washed up hack of an actress, Canadian vote…we’re in BIG trouble!!!!

Anything else to say Lohan?

In the words of Pamela Anderson, ‘She can suck it,” she writes.

Very nice.