“I think right now, doing nothing would not be advisable,” said Bob Barr when asked about whether the federal government should bail out the government-sponsored enterprises, Fannie Mae and Freddie Mac. “As much as a libertarian, I don’t like to see the government get further involved, with yet another sector of the economy, I think that because the government has caused this problem, similar to the savings & loan problem the government caused a generation ago, it has to do something. The question is: Can it do enough by providing some temporary security, some temporary back-up, as long as it’s done with the thought in mind that there has to be long-term congressional action here to restructure and reformulate the very way Freddie Mac and Fannie Mae operate, I think that would be an advisable solution. But not doing nothing.”
This, of course, is in direct contradiction to a press release issued today by the Libertarian Party.
Tom Knapp offers his thoughts here.
Here is video footage of Barr’s support for a bailout of the GSEs — entities in which risk is socialized while profits are privatized: