Long, Slow Burn

We’re in a mess, and the people in power don’t have a clue on what to do. Congress is backwards. We’re in a financial meltdown and the Dems are talking about “The Fairness Doctrine”?!?! Really?

When was the last time that either of our two major presidential candidates spoke of balancing the budget? It’s all about who will spend more money. I’m sick of it. I’m sick of it. I’m mad as hell.

I’m going to vote (early) next week. I’m going to write in Ron Paul’s name for president. I can’t stand even the second tier candidates: Barr and Nader.

And even today, as market forces deflate the credit bubble, the government is stepping in to re-inflate it. First came the Treasury’s $700 billion plan to purchase mortgage assets that no one in the private sector would buy. Now it has recapitalized banks to the tune of $250 billion, guaranteeing loans between banks and fully insuring non-interest-bearing accounts. Policymakers say that absent these steps, banks would not be able to extend loans. But given our already staggering debt burden, perhaps more loans are not the answer. That’s what the free market is telling us. But the government cannot abide solutions that ask for consumer sacrifice.

Real credit can be supplied only by savings, so artificial steps to stimulate lending will only produce inflation. By refusing to allow market forces to rein in excess spending, liquidate bad investments, replenish depleted savings, fund capital investment and help workers transition from the service sector to the manufacturing sector, government is resisting the cure while exacerbating the disease.

With the $850 bailout (including all of the PORK!!!), and the banks being funded by government, we’re in big trouble. We need to let market forces work, let sanity return to business, encourage individuals to SAVE their money, and maybe, MAYBE we might get out of this thing.

Read more here:
Don’t Blame Capitalism

This makes me a bit nervous. The government is buying stock in banks. They say that they’ll back out once stability has returned to the markets. Is this temporary just like the income tax on individuals? This is getting very little press I’m afraid. Why is that?

We need to let the free market work, and that means that some people will lose their investments. What part of government means that people can’t lose their investments? What part of government dictates that the economy can’t be unstable? We’re throwing bad money after bad debt, and this makes me nervous about the future.

U.S. will buy stock in banks, Paulson says