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Let’s be honest about why we’re in the shape we’re in
Posted by: McQ on Monday, September 29, 2008

Dick Armey takes time in his denunciation of the present bailout proposal to make a very important point. This isn't a "market failure" as many who are now voting us into perpetual debt are saying:
Indeed, many proponents of the bailout have tried to put the blame for this massive government intervention squarely on the market, asserting that free market capitalism has somehow failed and the only solution is more government intervention. Yet markets do not operate in a vacuum. In fact, government institutions can have a strong – and too often corrupting – influence on markets. In the specific predicament financial markets face today, there is a long history of government actions that have led to what is most accurately described as a government, not market, failure.

Some point to “unbridled greed” as the root cause of the crisis. There are plenty of bad actors to point to, but self-interest is in the very nature of human action, a constant that cannot provide an accurate explanation of the extraordinary distortions in the housing and financial markets. Self interest does indeed drive private economic behavior and the invisible hand of the market, but it equally drives so-called “public” political action. A more serious examination of the current financial meltdown suggests government excesses, not unbridled markets, played a determinant role in today’s market meltdown.
Keep that in mind when you start hearing all the talk about the need for more intervention and more regulation by government. Again, this is a government caused problem in which the government is trying to shift the blame and ride to the rescue. And all that gives you is more government, more intrusion and less secure markets.

Armey very nicely lays out what is will happen in this mess once this plan is implemented:
As a Public Choice professor, I used to begin class each semester with Armey’s Axiom number one: “The market is rational and the government is dumb.” Those quick to call for more regulation forget the power of markets, and refuse to acknowledge government culpability in the current mess. Time and again, governments the world over have attempted to outsmart the market and the current legislation is no exception. And time after time, markets respond, toppling the best-laid government plans as they move to correctly price the underlying assets in exchange.
We are probably in for the long-version of pain management (the Japanese version). And it may become chronic pain management if the government is allowed to continue to intrude and block corrections and their results by claiming it is the market that is the problem.
 
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The irony is that the current mess is helping Obama . . . who represents the worse excesses that got us here in the first place.
 
Written By: Don
URL: http://
McQ - ... it may become chronic pain management if the government is allowed to continue to intrude and block corrections and their results by claiming it is the market that is the problem.

This is the problem exactly. The government - more specifically, those members of Congress and the bureaucracy who have been in charge of this mess for the past several years - has no interest in an honest appraisal of the situation because they don’t want to take any heat. It’s easy to push things off on "the market" or unnamed "executives"; given that many democrats are closet socialists, blaming the free market is a totally natural response.

I also suspect that certain politicians and other fat cats are thinking of ways to cynically use this situation to their advantage. When the dust settles, the government will have MORE control, which means more power for a handful of legislators-for-life and the parties they represent. Follow the money.
 
Written By: docjim505
URL: http://
docjim505,

this somewhat applies to your point:
American Thinker: Barack Obama and the Strategy of the Manufactured Crisis

Although I, myself, tend to think of the mechanism implimented as more of an opportunistic tactic than a planned strategy or ’conspiracy’.
 
Written By: jpm100
URL: http://
October SURPRISE!

Okay, it was a bit ahead of schedule.
 
Written By: looker
URL: http://
Hi McQ,

Have you seen this yet?.

This is a detailed analysis by Stanley Kurtz explaining ACORN’s cuplability in this mess and their longstanding ties to Obama. It ran in the New York Post. The rest of the MSM won’t touch this subject with a ten foot pole.
 
Written By: Aldo
URL: http://
oops! My link in the previous comment goes to page two of the story.
 
Written By: Aldo
URL: http://
jpm100,

Thanks. I’ll have to look at the article in detail.

Out of curiosity, hasn’t George Soros made quite a lot of money in the past by rigging problems with some nation’s currency?
 
Written By: docjim505
URL: http://
"Out of curiosity, hasn’t George Soros made quite a lot of money in the past by rigging problems with some nation’s currency? "

Great Britain, 1992.

http://www.answers.com/topic/george-soros
http://www.infoplease.com/ce6/people/A0845983.html
 
Written By: timactual
URL: http://

 
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