Quote:
I am not arguing the fact that the bailout be necessary to keep the US economy afloat (that problem is so diverse and way over my head), but I am arguing and agree with Ron Paul that government intrusion created this mess.
http://www.cnn.com/2008/POLITICS/09/23/paul.bailout/index.html
When government is allowed to give special or preferential treatment, monopolies are created and competition is squashed as Freddie Mac & Mae are great examples.
Right or wrong, saving the economy or not. I would still contend that this is an act of communism.
I had no idea how bonds were traded.

see that is totally wrong.
Freddie and Fannie were created to provide stability to the home mortgage market and enable ALL PEOPLE to get loans. It provided a system where banks could wholesale sell their loans to a big organization to wrap them all up and create an efficient market. The governement support provided stability and a high assurance of credit. Without that implied (at the time implied) guarantee the cost of funding for a mortgage would like like 10-15% easy.
I like a lot of Ron Paul's statements and beliefs, but he is DEAD wrong on this.