Mismanagement of the Economic Crisis

I have become more and more concerned about the current state of the economy in the past few months. I know what you are thinking, "Of course you are! Two of the biggest mortgage companies and one of the biggest insurance companies in the world just collapsed!" As true as that is, that is not even the main point of my distress. My uneasiness has come from the way this situation was handled. Fannie Mae and Freddie Mac, two incredibly large mortgage companies are on their way to losing everything because of the lack of management to keep them afloat. So of course the government takes over these companies and tries to set them back on their feet.

I see two problems with this scenario: one is that I definitely don't want the same government that ran FEMA during Hurricane Katrina, sets up the public schools, and delivers my mail to be in control of my mortgages and the other is that if these companies are set back up outside of government control they will hire similar corporate leadership and end up in the same shape several years down the road. Now as much money as the government pumps into public school systems, and observing those around Montgomery, AL where I live I most certainly wouldn't want to see a corporation under government control. That would be disastrous. Furthermore, even if they do release these companies into the private sector, they will mess up the cycle of the economy.

Once one company under a certain management fails, the torch should then be passed onto new entrepreneurs who should stimulate the market with fresh new ideas and allow for economic mobility in this country. However, this bailout is sucking out the essence of true capitalism out of the American economy by keeping the same corporate management in business despite their collapse. Even more unsettling is the fact that I continue to see this trend even through the recent bankruptcy of AIG. This is incredibly bad timing for our economy to shut out the fresh minds, because all over the world new incredibly innovative ideas are appearing and challenging our economic status. The recovery of our economy depends on self-preservation by the ending of bailouts and letting the capitalist economy of the United States run its course.