Debra J. Saunders

Last week, Politico reported that the Federal Housing Finance Agency paid $13 million in bonuses to 10 Fannie and Freddie executives. It's true that Fannie and Freddie bigs are making 40 percent less than the bygone execs who drove their organizations into conservatorship. But with Freddie reporting a $4.4 billion loss for the past quarter, bonuses hardly seem in order.

The problem with these government-supported entities is that, with Washington serving as the deepest of deep pockets, there's no such thing as failure.

Congressional Republicans and Democrats have moved to block further bonuses. Of course, they'll hold hearings -- just to show how indignant they are.

But they're not likely to do anything about the corrosive forces that fueled Fannie and Freddie. Boosters were able to claim that Fannie and Freddie could open the door to broader homeownership -- at no cost to taxpayers. When the bill finally arrived, it was too big to stop.


Debra J. Saunders


 
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