With the US Government stepping in and taking over 79.9% of AIG with taxpayer money, the Federal government will now control more than 50% of the mortgage market (via Fannie Mae and Freddie Mac) and a huge stake of the financial and insurance business. USA has become the largest pseudo-communist nation on Earth. Pseudo, because it only works for those with money. Lots of it.

The pretext was the national emergency caused by the fear of AIG’s “defaults on a lot of unregulated derivative contracts”. But

It’s too bad they didn’t think of that when they were opposing any efforts to regulate those markets. That would have been interfering with free enterprise. This move, somehow, is not.

Or, as Rockford puts it:

This is socialism by default, however. We deregulated markets and told the big Wall Street financial houses to play in the sand box. But with no rules, they tossed out all the sand — and now you and me have to put back the sand. Of course, we can’t find the sand — we’ll have to buy some sand to put back in the sand box.

China implemented its own brand of “Socialist Market Economy”. Are we now adopting the “State Capitalism”?