The nationalization of Freddie Mac and Fannie Mae is a major blow to US imperialism and their claim that their system works, and that it is the superior form of capitalism in the world. This action has been forced on them by the threatened collapse of their own system. The US capitalist class claims they are not nationalized, not taken in to public ownership but are in "conservatorship"
However the financial press in Britain uses this term and insists on using it to force US imperialism to face up to the realities they are dealing with. Of course US imperialism hopes they can solve the problems of the two organizations with public money in the immediate years ahead and sell them back to the private sector at knock down prices. But this does not change the fact they have had to nationalize them and that this is a most powerful sign of the very severe crisis in capitalism at this time.
It is very important we explain this.
One article in the British financial press explains that the nationalization is a crisis of the present form of capitalism. But the architects of this form of capitalism will escape the blame as their more liberal parties and politicians of the free market, cowed by the offensive of capitalism, and being committed supporters of capitalism, will not pin the blame on them.
We would add that of course the Labor and trade union leaders will not pin the blame on them either. The role of the trade union leaders in the US and the trade union and social democratic leaders internationally is a lesson in abject cowardice in the face of capitalism. The world is paying a terrible price for the refusal of these elements to take on capitalism and to fight for an alternative socialist world.
Nevertheless this nationalization is a major blow in the face for US capitalism. It comes after and along with some others. It is increasingly bogged down in Afghanistan, it has lost its main man in Pakistan, it continues to be bogged down in Iraq and of course it has had its nose bloodied in Georgia where the forces it trained with the help of the Israeli government were humiliated by the Russian forces. And now Russia is making clear that it will act to stop US imperialism encroaching further on its borders.
Back home in the US, the election approaches with two crazed candidates on the Republican ticket and two more or less continue as usual candidates on the Democratic ticket. US imperialism is losing its number one position in the world. It will not stand by and let this happen without the most strenuous efforts to prevent it.
Very serious blunders and adventures, including increased military adventures are likely as it tries to hold on to its place at the top. This will be taking place against a background of severe economic crisis in the US and the world.
The only hope to avoid this scenario is the movement into action of the US working class. All activists have to seek ways to work together in united front direct action struggles against the offensive of capitalism so we can build a new movement; this has to include the building of a mass workers party to replace the two bosses parties, the two parties of US imperialism and war, the Republicans and the Democrats.