I rarely visit this site so I am afraid this topic is getting away from the original topic.
That's understandable. Realize that all topics on an open forum like this, tend to sway and wander around. That's simply the nature of open discussion.
Socialism means complete control.
Well at least I can now understand the logic of your perspective. So, by your view, you would claim that, unless the government has a 100% lock on a company, then it's .... capitalism?
This is an interesting view because by that standard, China is 100% capitalist. The Chinese government hold about 85% control over it's major utility and industrial companies. They would say this is socialized, but you would claim it isn't.
Whatever Fanny Mae was it was not completely control by the government. The government may have guarntee its depositors and imposed some regulations.But so do most governments . Recently Ireland ,Greece and Germany have guarntee the private deposits of all their banks. This does not mean the banks are government control, they are still own by private interests.
I would generally agree with this. I understand the concept of having some regulations, or in this case, some government issued insurance, is pretty much what that is.
Where I have a problem is when government determines who runs the company, or when it chooses business decisions for the company, or controls the prices for the companies products, or so on.
With Fannie Mae, the government controlled who ran the company. That's antithetical to private ownership. If it's 'privately owned', the government can't show up and say "here's your new CEO", which is pretty well what happened.
Also, government dictated company policy. The reasons Fannie Mae started securing subprime loans, is not because it was sound business practice, not because it was a profitable move... it was because government dictated it. Now does that sound more like a free capitalist system, or a socialized system?
The difference between a Socialist solution to the present crisis and others is that socialist would take over the whole failed company,nationalise it so it is fully government owned and not sell it back to the private sector until it yield enough profits to pay for the government purchase.
The American solution is for the government to buy out the debts of failed enterprises but give control still to the private business owners who will take any subsequent profit. This is not socialism
Er... you seem to be missing something here. Fannie Mae is right now... as we speak 100% fully owned by the government. There is no known plan to sell it back to the private sector.
Further, the whole reason why Fannie Mae was originally privatized was because it was doing fairly poorly. It is unlikely that it will "yield enough profits to pay for the government purchase" ever.
Supporting evidence is the US Post Office, which has always been mismanaged and never once shown a positive income. Every year the government has to give money to the USPO, to balance it's books.
See, I disagree with you that Socialism is an all or nothing deal. I don't agree that unless government has complete 100% control of everything, then it isn't socialism.
If you did the same for Capitalism, then there isn't real Capitalism anywhere on the planet. Obviously that isn't true. If government buys control over a company, that's socialism. If the government controls how much a company charges, or how much it buys, or what products it sells, those are all elements of socialism. If the government tells a hospital how much it can charge, and how much it will be paid, and what services it must offer, and which it can't... all that is socialism.