Palin Flunks Economics 101

With the U.S. economy nose diving and the residential real estate market in a shambles, one would think that from merely reading newspapers and watching television news coverage the governor of a state would after all have some clue as to what Fannie Mae and Freddie Mac do and how crucial they are to the mortgage market which underpins the housing market. Even more so if that governor has been tapped to be the VP candidate in the presidential election. Not so with hockey mom Sarah Palin, John McSenile's reckless choice for VP on the GOP ticket.

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Perhaps if Ms. Palin spent less time Bible thumping and being lobotomized by her church and more time following real world events she'd have know what these entities do. John McSenile apparently forgot that skills at holding a tent revival and supporting ex-gay programs don't translate into being fit to be VP or potentially president. This woman scares me more with every passing day as do the Kool-Aid drinkers who think she's wonderful. Here are some highlights from the Huffington Post:

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Gov. Sarah Palin made her first potentially major gaffe during her time on the national scene while discussing the developments of the perilous housing market this past weekend.

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Speaking before voters in Colorado Springs, the Republican vice presidential nominee claimed that lending giants Fannie Mae and Freddie Mac had "gotten too big and too expensive to the taxpayers." The companies, as McClatchy reported, "aren't taxpayer funded but operate as private companies. The takeover may result in a taxpayer bailout during reorganization."

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Economists and analysts pounced on the misstatement, saying it demonstrated a lack of understanding about one of the key economic issues likely to face the next administration. "You would like to think that someone who is going to be vice president and conceivable president would know what Fannie and Freddie do," said Dean Baker, co-director of the Center for Economic and Policy Research. "These are huge institutions and they are absolutely central to our country's mortgage debt. To not have a clue what they do doesn't speak well for her, I'd say."

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How politically significant a "gaffe" it is remains to be seen. The major concern about Palin's position on the ticket is that she lacks the economic and foreign policy wherewithal to serve as vice president. This certainly doesn't help on that front.