First of all, Fannie and Freddie are government sponsored enterprises (GSEs), not private companies. Using those institutions as an example of a failed private company is like me saying all sports suck because I don’t enjoy watching a small child throw a ball against the wall.

Secondly, Using one bad egg, such as Madoff, as an example is just as stupid as me saying all government entities are corrupt because the last 3 speakers of the house in Massachusetts got caught stealing.

As for “well run” companies, any company that breaks even or turns a profit could easily be considered as such, regardless of how much they spend on trash cans. That’s hardly a basis for judgement.

Socialism has never worked. There is no example to fall back on as a reason to adopt it. On the other hand, the US has been the world powerhouse for over a hundred years with capitalism. A few recessions is hardly “failure”.

The beautiful thing about capitalism is that it breeds innovation and hard work. If everyone was rewarded the same for any level of contribution or output, there would be absolutely no reason to work harder than the guy next to you. Call it “greed” or whatever you want, but the bottom line is that without something to aspire to, there’s no reason to put in any effort. Americans work a lot harder than other countries. I’d love to take the entire month of August off like in Spain for Siesta. I get paid to work 12 months a year though.

I recommend everyone check out these 2 things:

1. Milton Friedman on Greed – http://www.youtube.com/watch?v=RWsx1X8PV_A

2. Google Federal Housing Enterprises Financial Safety and Soundness Act of 1992 to see what Clinton did to cause the housing mess. It’s just as much a part of the recession as what happened on Wall Street. Also, as was mentioned Barney Frank is the reason Fannie and Freddie weren’t fixed earlier.

Both sides are to blame, which is why it’s time for major changes. We need to go back to Libertarian philosophies. Less government is better. The only thing that matters is personal liberty. The government can’t even balance the budget, yet people are so fast to accuse private companies of being poorly run and look to government to fix it. I guarantee you most private companies can’t get away with what our government does.

““Capitalism hasn’t failed” what do you call the current economic crisis?”

Its called a recession, something that has happened many, MANY times before in capitalist societies and also happens in socialist societies!

Its a basic scenario that ever ecenomic system faces here and there! In short, yes, saying “capitalism hasnt failed” is 100% right, its hasnt!

People need to quite over reacting and thinking the whole system is “failing” and the world is ending, its just a phase and like all phases it will come to an end, Obama even says by the end of this year, I’d probably give it a year and a half at most….

Capitalism has had like ten bad years out of the previous one hundred years. Capitalism is batting .900. The larger issue is that what caused the system to falter was quite anti-capitalist involving government involvement. In some ways, the government has been TOO involving in the banking industry and the mortgage business. When the government ties capitalism up, it’s not capitalism’s fault that it can’t function properly. Of course, yes, greedy business practices, and lying on Wall Street, also contributed significantly to the mess.

But I love it when people say “Capitalism failed!” It’s like people saying, if the sun was behind storm clouds all day long “We can’t count on the sun ANYMORE! The sun has failed us! Hurry, we must build more streetlights because we’ll now need them on permanently!”

As to Moore, I think John has it right. Documentarians don’t have to be honest or honest to be interesting, intelligent filmmakers. Just look at The Triumph of the Will–a Nazi propaganda film that earned a high-regard in film history and criticism because it had innovative camera techniques. I put Moore in the same camp: a very dishonest man who knows the technical aspects of making a film very well. Moore knows how to brainwash people just about as well as the Nazi propagandists did.

Saying MSNBC “exists” to counter Fox presupposes they actually have some semblence of market share. In fact it’s ratings are so poor I don’t think it’s accurate to say they counteract anything.

What I can’t appreciate is someone who through clever editing creates his OWN truth – one that flies in the face of facts. Calling his films documentaries is a joke at best.

And regarding capitalism, yes, it was back during the Clinton administration that it was put forth that “everyone” should be able to own a home – apparently whether they could afford one or not, starting the whole sub-prime mess. Also Elmer Fudd (aka Barney Frank) was AGAINST more regulation for Fannie Mae and Freddie Mac.

And now Obama is undermining the capitalistic system, which in the long run rewards well run companies and buries poorly run ones – by not allowing these major investment banks and auto manufacturers to reap what they have sown and declare bankruptcy. It’s a lesson well-learned from the previous Savings & Loan fiasco where the gov’t stepped in to bail THEM out years ago.

What lesson learned? If we screw up big enough the gov’t will save us – so why should we be fiscally responsible as corporations?

I am SO AGAINST all this bailout crap that is indebting the U.S. for generations to come.

Vic