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If you cared to watch the House and Senate "debate" and pontificate the $700 Billion Bailout Bill that later became an $850 Billion Bailout Bill with a bunch of unaffordable pork projects attached, you saw the continuation but not the culmination of the most destructive legislation ever undertaken by a United States Congress. That the President signed it is further proof that it was a far different breed of politicians that created the United States than the ones that are now destroying it.
Now the people seeking wealth in the market will not be driven by the motivation of personal responsibility but the ability to connive and persuade the politicians to grant them favors and bailouts to pursue wide eyed dreams that fit the politician´s popularity index. The days when an entrepreneur went to other private individuals that lend for profit and assigned credit for credit worthiness and reputation are gone. Now the politically favored can expect to ask the government for bailout after bailout as the precedent has been solidified. The payer of last resort will be the taxpayer who is only a figurehead as there are not enough taxpayers with enough resources to ever pony up the kind of money the Congress is willing to obligate the taxpayer for.
America is now a very different country than when the borrower had to show collateral or ability to pay back. We are entering the world of the politically dominated where favors and corruption are the order of the day and the honest reputable businessperson will be the sucker who competes on a playing field where he not only doesn´t know the rules but will be punished for breaking the arbitrary ones that the politicians daily try to "improve" and react to. We have been handed socialism on a gilded platter in the name of, "We had to do something,".
Yes, the Congress was faced with a market meltdown that they created by such nonsense as Fannie Mae and Freddie Mac, The Community Reinvestment Act and forcing lending institutions to meet unreasonable lending standards. Yes, they had an alternative to recognize and dump the regulations and let the free market make the adjustments needed and allow failures of those who bought into the scheme fail. How would the market made corrections? Fair question. If you want something like credit in a free market, you go to the lenders with the best reputations and the assets that will make your request possible. You go with a plan of what you have to offer for collateral, a good reputation for payment of loans and a way offered to repay. The lender will use his judgment to decide whether you are a deserving borrower or not and the loan proceeds based on this criteria. This used to be the usual and the way business was conducted. What we have seen is a gradual and now dramatic turn of events where you can get a no money down loan ( i.e. no collateral other than what you are buying) reduced payments that accelerate over time and a formula for tossing personal responsibility out the window. This is what socialism does to business and the individual who is willing to buy into the notion that the individual is no longer anything but a component of some group. The net result in the monetary world is inflation. Inflation that grows exponentially and soon makes the currency worthless. See the model of Zimbabwe with the highest rate of inflation the world has ever seen and the hunger and barbarian living conditions if you want a preview of what America can become under the banner of socialism as promoted by the bailouts of Congress.
Those pompous fair weather proponents of the free market denounced its failure for not overcoming the impediments they inserted into it. It was not a free market that failed but a hodgepodge of regulations and controls defined as a mixed economy where there was some freedom and some controls. Such a model doesn´t qualify as a free market. The coming failures will also be attributed to the free market even though it will be even more regulated than ever. No one will stand up and say, " The controlled economy has failed and we need to return to the free market and get government out of the business of trying to run everybody else´s business." Why? Because politicians and the media ( with few exceptions) are convinced that the free market cannot work because that is what they were taught and never challenged in college.
The abandonment of individual risk is the abandonment of individual responsibility. The lenders who knew the Fed would bail them out took unprecedented unconcerned risk with the loans the government mandated had to be made. What did they care? Why should they? The ones who were responsible in Congress and the Presidents who failed to veto, take no responsibility at all and dare to blame those they coerced for the failures of the government´s policies.
The beat goes on as the constituents raise money and hold rallies for political candidates that parrot the same worn out ideas and if they talk a little different or they look a little different they are seen as a vehicle of change. Appearance and style have nothing to do with the ideas that are in their pretty ( or not so pretty) heads. When these newcomers or old timers say the same old stuff and blame others for the mistakes of the politicians you know that all you have is a different container of the same old denial.
Hard times are upon us but there will be no depression from the mindset of the politicos but there will be inflation of unimaginable proportions. The possibility of a depression and the painful correction it would provide went out the window with the bailout bill of October 3, 2008. The Congress of today lives under the illusion that you can spend your way out of debt. That is not how debt is reduced. That is how debt is increased. The notion that the money of the bailout is an "investment" backed by what was deemed worthless by people far more in tune with value than Congress is another scam that would be investigated and prosecuted in the private market. Telling the American people they have just bought a stash of worthless loans that may turn out to be profitable had no prospectus, a bad history and the prospect of doom was a classic scam that the government has such agencies as the S.E.C. to protect the American buyer from. Evidently the taxpayer has no such protection when the government pulls the same scheme on the taxpayer without giving him a choice.
Now that the public is starting to own the means of production through the grubby hands of Congress it only remains for expanded bailouts and ownership; and the final blow of censorship to complete the socialism model and the ensuing tyranny. It will be up to a far more courageous generation to recognize what has happened and demand a return to a free market with a limited government. It will have to happen with enough courageous people absorbing and understanding the rights ideas, how they work, why they are moral and the alternative is unacceptable. That day may come but in the meantime we who are alive today will endure the demise of America and the promise of what she stood for. A turning point could have begun with a defeat of the bailout bill but it turned into an endorsement of that which our veterans fought against in WW II. The spread of Socialism. What they fought for was the opposite. The banner of freedom.
Now the people seeking wealth in the market will not be driven by the motivation of personal responsibility but the ability to connive and persuade the politicians to grant them favors and bailouts to pursue wide eyed dreams that fit the politician´s popularity index. The days when an entrepreneur went to other private individuals that lend for profit and assigned credit for credit worthiness and reputation are gone. Now the politically favored can expect to ask the government for bailout after bailout as the precedent has been solidified. The payer of last resort will be the taxpayer who is only a figurehead as there are not enough taxpayers with enough resources to ever pony up the kind of money the Congress is willing to obligate the taxpayer for.
America is now a very different country than when the borrower had to show collateral or ability to pay back. We are entering the world of the politically dominated where favors and corruption are the order of the day and the honest reputable businessperson will be the sucker who competes on a playing field where he not only doesn´t know the rules but will be punished for breaking the arbitrary ones that the politicians daily try to "improve" and react to. We have been handed socialism on a gilded platter in the name of, "We had to do something,".
Yes, the Congress was faced with a market meltdown that they created by such nonsense as Fannie Mae and Freddie Mac, The Community Reinvestment Act and forcing lending institutions to meet unreasonable lending standards. Yes, they had an alternative to recognize and dump the regulations and let the free market make the adjustments needed and allow failures of those who bought into the scheme fail. How would the market made corrections? Fair question. If you want something like credit in a free market, you go to the lenders with the best reputations and the assets that will make your request possible. You go with a plan of what you have to offer for collateral, a good reputation for payment of loans and a way offered to repay. The lender will use his judgment to decide whether you are a deserving borrower or not and the loan proceeds based on this criteria. This used to be the usual and the way business was conducted. What we have seen is a gradual and now dramatic turn of events where you can get a no money down loan ( i.e. no collateral other than what you are buying) reduced payments that accelerate over time and a formula for tossing personal responsibility out the window. This is what socialism does to business and the individual who is willing to buy into the notion that the individual is no longer anything but a component of some group. The net result in the monetary world is inflation. Inflation that grows exponentially and soon makes the currency worthless. See the model of Zimbabwe with the highest rate of inflation the world has ever seen and the hunger and barbarian living conditions if you want a preview of what America can become under the banner of socialism as promoted by the bailouts of Congress.
Those pompous fair weather proponents of the free market denounced its failure for not overcoming the impediments they inserted into it. It was not a free market that failed but a hodgepodge of regulations and controls defined as a mixed economy where there was some freedom and some controls. Such a model doesn´t qualify as a free market. The coming failures will also be attributed to the free market even though it will be even more regulated than ever. No one will stand up and say, " The controlled economy has failed and we need to return to the free market and get government out of the business of trying to run everybody else´s business." Why? Because politicians and the media ( with few exceptions) are convinced that the free market cannot work because that is what they were taught and never challenged in college.
The abandonment of individual risk is the abandonment of individual responsibility. The lenders who knew the Fed would bail them out took unprecedented unconcerned risk with the loans the government mandated had to be made. What did they care? Why should they? The ones who were responsible in Congress and the Presidents who failed to veto, take no responsibility at all and dare to blame those they coerced for the failures of the government´s policies.
The beat goes on as the constituents raise money and hold rallies for political candidates that parrot the same worn out ideas and if they talk a little different or they look a little different they are seen as a vehicle of change. Appearance and style have nothing to do with the ideas that are in their pretty ( or not so pretty) heads. When these newcomers or old timers say the same old stuff and blame others for the mistakes of the politicians you know that all you have is a different container of the same old denial.
Hard times are upon us but there will be no depression from the mindset of the politicos but there will be inflation of unimaginable proportions. The possibility of a depression and the painful correction it would provide went out the window with the bailout bill of October 3, 2008. The Congress of today lives under the illusion that you can spend your way out of debt. That is not how debt is reduced. That is how debt is increased. The notion that the money of the bailout is an "investment" backed by what was deemed worthless by people far more in tune with value than Congress is another scam that would be investigated and prosecuted in the private market. Telling the American people they have just bought a stash of worthless loans that may turn out to be profitable had no prospectus, a bad history and the prospect of doom was a classic scam that the government has such agencies as the S.E.C. to protect the American buyer from. Evidently the taxpayer has no such protection when the government pulls the same scheme on the taxpayer without giving him a choice.
Now that the public is starting to own the means of production through the grubby hands of Congress it only remains for expanded bailouts and ownership; and the final blow of censorship to complete the socialism model and the ensuing tyranny. It will be up to a far more courageous generation to recognize what has happened and demand a return to a free market with a limited government. It will have to happen with enough courageous people absorbing and understanding the rights ideas, how they work, why they are moral and the alternative is unacceptable. That day may come but in the meantime we who are alive today will endure the demise of America and the promise of what she stood for. A turning point could have begun with a defeat of the bailout bill but it turned into an endorsement of that which our veterans fought against in WW II. The spread of Socialism. What they fought for was the opposite. The banner of freedom.
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