Free Market Means Free From The Government

@gewcew23 (8010)
United States
October 8, 2008 12:34pm CST
When so many politicians speak with one voice in support of the biggest act of government intervention in the economy in generations, I cringe. Bipartisianship is the death of liberty, but that is for another discussion. Everybody talked about the "freeze" in the credit markets, but why, I wonder, were the mass news network programs that repeated the credit-freeze mantra pausing for commercials from companies trying to lend me money? Ditech and LendingTree still hawk mortgages at under 6 percent. Some credit freeze. What no one speaks about is that banks do not lend their own money, they lend other peoples, their depositors and their stockholders. Just because the banks disappear doesn't mean the lenders will. Borrowers will still want to borrow, and lenders will still want to lend. A bank that made a bad loan, did just that, made a bad loan. Loans could still be made just have to made to safer individuals. I believe that the bailout will do more harm than good, like aiding an alcoholic by giving him booze. It perpetuates the moral hazard produced by government guarantees that created the problems in the first place. It acts as an enabler by giving more money to opportunistic lenders who assumed they needed to be bailed out. Sure without the bailout, there might have been a severe recession. Bubbles do pop, that is what they do. But it's important that we let bubbles pop. Markets would then find a floor and recover.
2 people like this
3 responses
@rodney850 (2145)
• United States
8 Oct 08
Gewcew, I totally agree with your assessment of the "bailout"! I would also take it a step further and that is to say that we will stil end up in a recession/depression! As long as government believes it is the answer to all of the ills and problems of the people, the people will be the ones suffering and paying the price!
2 people like this
@xParanoiax (6997)
• United States
10 Oct 08
I hear how everybody goes, "BUT IT'LL HURT"...of course it will hurt. Learning from your crap is painful, always is. I worry for people for these reasons, but when you have this stuff build up...and allow it to do so for ages, when everyone just goes along with it like it's just grand...just fine, then obviously by time you get to the end of the "bubble" -- IT'S GONNA HURT because it has to grind the message into your head about why it's hurting you now. Humanity's slow learners. We only seem to learn anything if we suffer first. I know this is only the majority, the minority of the population is quicker...but for the majority to catch up...regrettably. This ain't even me saying we shouldn't do anything. I just prefer the stance where you don't try to stop something that you kinda can't stop...at least without risking something much worse. I prefer the stance where you figure out what people can do in order to weather the situation. What problems the government helped create and how to reverse them. Oh, and of course...debt and inflation is primary on this last thing I've mentioned. And these are BIG things. Freedom, even in the economy, isn't something you can just suspend whenever it's convenient. If you believe in it: STICK WITH IT. Sheesh. Banks, on the other hand, I've always maintained that the economy can survive without the banks. It CANNOT on the other hand, survive without the people...and as banks crash, the people obviously remain. The only way this would've been the end of the world as we know it, is if the dollar was obliterated -- which'll only happen if inflation rises to the point where dollar value hits zero...and actually this bail out will almost certainly do that. Of course, there was a possibility that if too many banks crashed...they could also bring the dollar's value to zero... So, actually, by the time this period of history is done...we might be saying, "BLAH, we were screwed either way but we were still idiots about it." ...so yeah, I'm kinda going on...but this is me going, "Yes, gewcew. I agree. People are being idiots."
1 person likes this
@Destiny007 (5819)
• United States
9 Oct 08
I agree... We keep hearing Obama and the rest of the socialists claiming that the problems are the result of republicans wanting to deregulate the banking industry, along with Blaming the last 8 years of failed Bush economic policies. The truth is that the problem was the result of too much regulation and the wrong kind of regulation... regulations and policies that were mandated by the democrats under the mistaken notion that everyone had a "right" to home ownership regardless of creditworthiness or the ability to pay for it. It was nothing more than another failed social engineering experiment on the part of the democrats, and now we the people are expected to once again clean up after them. These bailouts amount to nothing other than the socialization of our financial network.... and in case you haven't noticed, they don't seem to be working.
1 person likes this