THE SKY IS FALLING
The bigger the lie, the more likely people will believe it. This never ending bailout is the whooper of all time. Here are three of many lies.
There is a World Wide financial meltdown coming if the Federal Government isn’t given unprecedented power and money.
Some companies are too big to fail.
There isn’t enough regulation.
All are false. What makes any reasonable person think the Unites States Government can fix anything and that the word “fix” is even appropriate. As the free market economist Milton Friedman said 'When a private enterprise fails, it is closed down. When a government enterprise fails, it is expanded.” This nonstop frenzy of fear spread by the media and government officials has hidden the truth that our Federal Government has captured so much power that Moscow is jealous and wants a blueprint. Does anyone in Washington understand the words “limited government?” The same cartoon character Barney Frank that didn’t use his regulatory powers he had to investigate Fannie Mae now wants even more authority. We would be better off with Barney Ruble and the other Flintstones in charge.
A few facts regarding two assets that capture the daily headlines, stocks and houses. If you buy a stock that doesn't pay a cash dividend that equals at least 5%, you are speculating. And if you’re doing it with borrowed money you’re really speculating. Stop whining if it doesn’t work out. Do not listen to the cheerleaders on CNBC. They want a bull market for ratings and have the belief the world should revolve around overpriced stock prices. Where does this logic come from that stocks are supposed to be at a certain level and it’s a crisis if they’re not? Despite what realtors pontificate, the purchase of a home is also filled with speculation. In fact, the purchase of any asset with borrowed money is open to potential loss. Imagine what homes would be worth if one had to put down 50% or all cash. My point is that much of today’s home and stock values are artificially high due to the ability to borrow. It is ludicrous to let the Government intervene by trying to artificially prop up prices of either asset class. Let the free market system find the true value without Government intervention. It was government intervention that helped cause this mess. Democratic administrations pressured banks to make housing loans to unqualified buyers and the Bush administration allowed investment firms to leverage 30-1.
Too big to Fail?? That's the biggest lie of the 21st century. Name one example of a worldwide financial disaster since the 30’s that resulted from large firms going under. There aren’t any. This credit mess has been brewing for 30 years and will take at least five years to unwind. Paulson and Bernanke are selling the lie that increased government power can somehow make the inevitable pain of asset devaluation go away in months. This is worse than Socialism; it’s on a fast track to Communism. If Congress wants to do something useful, they should reduce corporate and personal income tax rates by 50% and cut Federal spending by 40%. Give the money directly to the taxpayer; not this end around nonsense that quadruples the government’s power.
Dooley
10/29/08
The bigger the lie, the more likely people will believe it. This never ending bailout is the whooper of all time. Here are three of many lies.
There is a World Wide financial meltdown coming if the Federal Government isn’t given unprecedented power and money.
Some companies are too big to fail.
There isn’t enough regulation.
All are false. What makes any reasonable person think the Unites States Government can fix anything and that the word “fix” is even appropriate. As the free market economist Milton Friedman said 'When a private enterprise fails, it is closed down. When a government enterprise fails, it is expanded.” This nonstop frenzy of fear spread by the media and government officials has hidden the truth that our Federal Government has captured so much power that Moscow is jealous and wants a blueprint. Does anyone in Washington understand the words “limited government?” The same cartoon character Barney Frank that didn’t use his regulatory powers he had to investigate Fannie Mae now wants even more authority. We would be better off with Barney Ruble and the other Flintstones in charge.
A few facts regarding two assets that capture the daily headlines, stocks and houses. If you buy a stock that doesn't pay a cash dividend that equals at least 5%, you are speculating. And if you’re doing it with borrowed money you’re really speculating. Stop whining if it doesn’t work out. Do not listen to the cheerleaders on CNBC. They want a bull market for ratings and have the belief the world should revolve around overpriced stock prices. Where does this logic come from that stocks are supposed to be at a certain level and it’s a crisis if they’re not? Despite what realtors pontificate, the purchase of a home is also filled with speculation. In fact, the purchase of any asset with borrowed money is open to potential loss. Imagine what homes would be worth if one had to put down 50% or all cash. My point is that much of today’s home and stock values are artificially high due to the ability to borrow. It is ludicrous to let the Government intervene by trying to artificially prop up prices of either asset class. Let the free market system find the true value without Government intervention. It was government intervention that helped cause this mess. Democratic administrations pressured banks to make housing loans to unqualified buyers and the Bush administration allowed investment firms to leverage 30-1.
Too big to Fail?? That's the biggest lie of the 21st century. Name one example of a worldwide financial disaster since the 30’s that resulted from large firms going under. There aren’t any. This credit mess has been brewing for 30 years and will take at least five years to unwind. Paulson and Bernanke are selling the lie that increased government power can somehow make the inevitable pain of asset devaluation go away in months. This is worse than Socialism; it’s on a fast track to Communism. If Congress wants to do something useful, they should reduce corporate and personal income tax rates by 50% and cut Federal spending by 40%. Give the money directly to the taxpayer; not this end around nonsense that quadruples the government’s power.
Dooley
10/29/08
posted by Dooley at 9:02 PM
