Fannie, Freddie, and Failure

Last week's reports that the just-fired top executives at Fannie Mae and Freddie Mac may walk off into the CEO sunset with getaway packages worth a combined $24 million - after leading the two mortgage loan giants to billions in losses - had commentators clucking up a quick consensus.   We Americans, huffed pundits and politicos alike, simply must not tolerate windfalls for CEOs who perform poorly!   Ignore these guys. They have the problem all wrong. They're going crazy about outrageously high rewards for poorly performing CEOs. They're missing the real driver behind our current economic meltdown: the notion that outrageously high rewards, in a modern economy, play a perfectly legitimate role.

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