Wall Street Bailout: The End of Free Markets?
Is Monday's stock market surge (following massive worldwide intervention by the U.S. and European governments) proof that the so-called free market isn't so free anymore? Is it proof the free market will fail left to its own devices?
In his announcement of a $250 billion bank stock purchase deal, President Bush insisted that the move was "not intended to take over the free market but to preserve it".
Oh yeah? Normally, I'm a believer in allowing the free market to function. But not when a president has an addiction to spending that clobbers that of the most heroin-dependent druggie on the planet. The free market cannot function when unwinnable wars costing $10 billion per month are launched. The free market cannot function when banks, unfettered by regulation, offer billions of dollars in mortgages to clients who cannot repay them.
By mistake, President Bush finally did something right this week by pushing through part of the $700 billion bailout, er, recovery package. But it was only by mistake. This president has done more to wreck the U.S. economy and its financial system than any prior president and, let's hope, any future president could possibly do.
Tags: economics | George W. Bush | Wall Street | stock market | banking | Bush administration | government intervention
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What about Clinton?
September 30th, 1995 an economist writing for the New York Times predicted this bailout. He said due to increasing pressure from the Clinton administration, the Fed was loosening lending standards. He went on to say that in times of economic prosperity, (dot.com boom of 99-02) this wouldn't have much of an effect. But in the event of an economic downturn, some sort of rescue plan would be needed. The stage was set before Bush ever got into office.
Look up the Community Reinvestment Act of 1995.
Moving on...
The belief that the problems which created the current economic crisis simply grew from the current administration is narrow minded. The blame for the current crisis rests on the shoulders of BOTH the individual and the financial giants. It's time we hold ourselves responsible after an era of excess comes to an end and look for ways to prevent this from happening in the future.
Obama's First Executive Order
When Barack Obama becomes president, i hope his first executive order is a mandatory college Education law that will require ignorant, prejudiced fools to read a text book. And boy, do some of these comments prove my point.
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