Hat in hand.

Tuesday, November 6th, 2007 @ 7:33 pm | Economy

Can’t believe I missed this:

Banks shut out of the market for short-term loans are finding salvation in a government lending program set up to revive housing during the Great Depression.

Countrywide Financial Corp., Washington Mutual Inc., Hudson City Bancorp Inc. and hundreds of other lenders borrowed a record $163 billion from the 12 Federal Home Loan Banks in August and September as interest rates on asset-backed commercial paper rose as high as 5.6 percent. The government-sponsored companies were able to make loans at about 4.9 percent, saving the private banks about $1 billion in annual interest.

Now that the credit markets have shriveled the Big Boys are going to Big Government hat in hand.  So much for moral hazard.  And besides some wonks at Cato, how many Republican bloggers do you think are jumping up and down about the welfare queens at Countrywide?  Or decrying Washington Mutual for violating the sacred laws of free-market capitalism?  I can say with some degree of confidence that the number is likely hovering around zero because it’s simply easier to beat up on Graeme Frost than it is Ameriprise.

-mg

One Response to “Hat in hand.”

  1. CR Says:

    The question should always be “Big Government for whom?