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March 9 (Bloomberg) -- Back in the 1960s, Lyndon Johnson gave us the War on Poverty. In the 1970s, Richard Nixon launched the War on Drugs. Now that we have seen President Barack Obama's first-year legislative agenda, we know what kind of a war he intends to wage. It is no wonder that markets are imploding around us. Obama is giving us the War on Business. Imagine that some hypothetical enemy state spent years preparing a "Manchurian Candidate" to destroy the U.S. economy once elected. What policies might that leader pursue?

This morning Business Insider discussed how the size of the bailouts of Fannie Mae and Freddie Mac already dwarfs the benefits the supposedly accrued to home buyers. Over the entire course of their existence, Fannie and Freddie may have saved homeowners $100 billion in mortgage interest. The government, however, has now had to pledge $400 billion to rescue them. $60 billion of that has already been withdrawn. The Business Insider argument this morning demonstrated that the GSE's were colossal policy failures. But we were assuming then that the policy goal was something as benign as delivering tangible benefits to the American people. If you take away that assumption--that is, if you allow for the idea that the GSE's were cynical rent-seeking operations to begin with--you can see that they may actually have succeeded. If the goal of the GSE's wasn't to provide a net savings but to transfer wealth from future generations, they seem to have succeeded wildly. There was no free lunch or extra value or savings created by the implied government guarantee. Instead, the liability for the interest supposedly saved was just pushed forward in time. And now it has come due. That's right: the GSE's operated on the same basis as an exploding mortgage. Low interest at first, with a huge balloon payment at the end. And like a borrower victimized by a predatory lender, we just hadn't paid enough attention to the details to realize that this is how this deal would work out.

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Business Product Partners have taken a different approach and are planning to turn one of their natural gas lines into 650,000 barrels of oil a day from 2020