The panic over the mortgage collapse and its wide-ranging consequences for the national and global economy led to Congress passing a $300 billion bailout plan for lending giants Fannie Mae and Freddie Mac this week just as newspapers were putting the finishing touches on their sans-serif "Apocalypse" typesettings. How nice for Fannie and Freddie that help was forthcoming in the form of a taxpayer-financed buy-out. Guess those millions they've poured into lobbying and campaign contributions through the years have paid off.

They are neither government agencies nor your average big corporations. Yet Fannie May and Freddie Mac seem to want the best of both worlds – state protection to bail out their failing loans and non-state intervention in their “private” business dealings. On top of that, as government sponsored enterprises (GSEs), they receive favorable discounts when they borrow money. For years the pair has reaped in the benefits without paying the costs – assuming government protection while resisting government regulation.

Sounds like every corporation’s dream to be Fannie and Freddie, especially when the pair could afford to splurge $3.5 million towards lobbying alone in the first three months of this year. Their political clout on Capitol Hill is formidable. Aside from their sophisticated lobbying efforts, they make incredibly generous donations to national campaigns -- about $1.5 million combined in 2006 alone.

But the big money has gotten Fannie and Freddie into deep trouble this time, as shares of each company have lost about half their value since the beginning of last week. Currently running a $5 trillion mortgage debt, they are now desperately seeking the government’s help to stay afloat in the already shaky credit market. To no one’s surprise, the government has been more than proactive in rescuing them, having already outlined plans to provide additional lending support and to purchase an equity stake in the companies if necessary. The worst case scenario would be a government bailout potentially costing taxpayers $420 billion to $1.1 trillion.

The urgency of their situation should not be understated. But one cannot help but wonder, could this have been prevented with better government oversight? Fannie and Freddie are after all government sponsored agencies.

I guess it’s hard to scold the business practices of an industry that spends millions and millions making friends with you – and financing your campaigns. On behalf of all taxpayers, thanks for sticking us with the check.