I say neither.
Fate, as in "higher power", God, etc. Plain ol' BS to me...
Freewill, as in "I am truly free. I choose my path in this life". Wrong, I fear.
Long Story:
http://books.google.cl/books?id=uIsEajEwVQsC (short review here:
http://www.mentalhelp.net/poc/view_doc. ... book&cn=21 )
Short Story: We think, we believe we are free just because we ignore the causes of our own behavior. Just because we are
kind of unpredictable, doesn't mean that we are actually that. We are machines. Meat machines, but machines nevertheless. Let's not mistake our ignorance of the causal schemes that rule our mental life with "freedom". Causality, bitches.
Freedom, the term as used in politics, is OK for me. But in a deeper sense... duh. It's just plain old fate. But without the higher power, without the all seeing eye. Just physical phenomena. All the way down (and up).
It is sad at first, but when you get used to the idea, it's still sad but you don't care that much anymore. You just focus on being happy. Karma is as real as you want it to be...