John McCain has admitted that he is not an expert on the economy, but he gets this one right. Today Senator McCain gave a speech about Freddie Mac and Fannie Mae (LINK). Because of the backing of the federal government, these companies were able to grow without competition. Now that we have a mortgage crisis at hand, the government has declare that they are too big to fail. Isn’t that special?

Senator McCain believes as I do that they must be saved, but the government should have never let it get to this situation.

I support taking the unfortunate but necessary steps needed to keep the financial troubles at these two companies from further squeezing American families. But let us not forget that the threat that Fannie Mae and Freddie Mac pose to financial markets is a tribute to crony capitalism that reflects the power of the Washington establishment.

He then proceeds to the proper solution

If elected, I’ll continue my crusade for the right reform of the institutions: making them go away. I will get real regulation that limits their ability to borrow, shrinks their size until they are no longer a threat to our economy, and privatizes and eliminates their links to the government.

I would split them up, but shrinking them works just fine for me too.

Just wondering: Where does Barack Obama stand on this issue considering Jim Johnson, who used to run Fannie Mae,  was at one time the head of the vice president search committee. Maybe if he wasn’t talking to Germans as a world citizen, we could find out what he thinks about our issues.

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