The question now isn’t whether the fee market dead, it is (if indeed it ever existed), but when will Republicans and libertarians admit they have made a huge ideological error.
The strange argument against lobbyist influence directed at Barack Obama from John McCain, steers clear of the simple philosophical difference between the parties, where Democrats believe in regulating capitalism. Without the single mindedness of conservative disdain for government intervention, deregulation would never have come about, and we wouldn’t be in the mess we’re in today. I won’t defend some Democrats, who instead of sticky to their ideological callings, compromise their values in the name of bipartisanship, and pass policies that allow these deregulation whores an air of credibility.
Unregulated free market advocates are now on the endangered species list, and they’re panicky warnings are sounding more insane by the moment, as demonstrated by this from Reuters:
Critics said the government was going too far in bailing out the financial sector.
Of course they would say this. After all, they have an entire philosophy and life style to defend. Think of all the “think” tanks that think they can spin their way out of this one.
"The free market for all intents and purposes is dead in America," said Sen. Jim Bunning of Kentucky, a member of Bush's own Republican Party. The Treasury's proposal would "take away the free market and institute socialism in America," Bunning said. "The American taxpayer has been misled throughout this economic crisis. The government on all fronts has failed the American people miserably."
Again, it’s the governments fault, not the lack of government. But if Bunning had his way and let the markets fall, then the following statement from the man who helped cause this crisis, President Bush, would be almost liberal by his standards. According to Bush, “These measures require us to put a significant amount of taxpayer dollars on the line. But I'm convinced that this bold approach will cost American families far less than the alternative."
It “will cost American families far less than the alternative.” Thank you Mr. President, for bring us to the point of no return. THE FREE MARKET IS DEAD.
Bush, and supporters of the rescue plan, said it would restore confidence in the financial system. Wrong. Spending our tax dollars does not restore confidence, regulating our capitalist system is the only thing Americans will settle for.
Bush said, "And as we've seen repeatedly over the past eight years, we have a flexible and resilient system that absorbs challenges, makes corrections, and bounces back."
Does this guy know how sadly ironic he sounds? Yea, It’s been a hell of disastrous eight years.
In the Wisconsin State Journal article, “Local experts say financial crisis is 'out of control,' a few economic experts checked in with their opinions locally.
"Like an out-of-control forest fire" — that's how Scott Anderson, senior economist with Wells Fargo Economics in Minneapolis. Anderson said … he has qualms about the federal government "running our financial system." Anderson said while economists never want a solution that puts taxpayer and U.S. Treasury finances at risk to correct problems of a profit-driven industry, the current situation is "a Great Depression-style financial crisis that requires a Great Depression-style solution," one that only the government can handle. James Johannes, UW-Madison School of Business finance professor, said rescuing the companies that are too big to fail creates "perverse incentives. I am bothered by policies that privatize gains and socialize losses."
David J. Ward, president of NorthStar Economics in Madison said, "In a crisis, ethics and principle do go out the window."
(Do you think that’s just what the Bush administration was counting on all along? “Ethics and principle out the window.”)
According to AP:
The administration is asking Congress to let the government buy $700 billion in toxic mortgages in the largest financial bailout since the Great Depression. That doesn’t include about $500 billion dollars in earlier bailouts.
It would raise the statutory limit on the national debt from $10.6 trillion to $11.3 trillion to make room for the massive rescue.
You’ll love this as a taxpayer: The proposal does not specify what the government would get in return from financial companies for the federal assistance.
President Bush said he initially thought the government could deal with the trouble on Wall Street "one issue at time." But the financial "house of cards was much bigger, and it started to stretch beyond just Wall Street in the sense of the effects of failure. So when one card started to go, we were worried about the whole deck coming down. Further stress on our financial markets would cause massive job losses, devastate retirement accounts, further erode housing values, and dry up new loans for homes, cars and college tuitions. The problem would spread to the average citizen. This is Wall Street plus Main Street and I'm worried about Main Street."
I guess there has to be a first time for everything, Mr. Bush. Here's an opinion from former mayor of Madison Wisconsin Paul Soglin, on his blog waxingamerica.com, which you can find on this sites side bar sites to visit.
Newt Gingrich with his Contract on America was one of the principal architectsof the 1999 repeal of the depression era reforms, Glass-Stegall that stabilized the United States economy and prevented unfettered speculation that could trigger economic collapse and bring ruin to hundreds of millions of families -people like Waxing America readers.
The product of his theoretical rubbish first bore fruits with the Enron and Worldcom disasters and this past week brougth us the worse economic collapse in three generations.
Now Newt Gingrich wants to lower the capital gains taxes to zero.
His real motivation is that he fashions himself as an economist theorist and wishes to be recognized for his intellectual prowess.
Not content with the destruction he created, he plows forward. The man is a fool. He should be tried for treason.
“These measures require us to put a significant amount of taxpayer dollars on the line. But I'm convinced that this bold approach will cost American families far less than the alternative."-Bush
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