Is this bailout another example of how capitalism must bailout socialism, what Dem’s keep promoting?
by Mortgage Rates on Sunday, November 21st, 2010 | 4 Comments
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The only thing for sure here is that this is NOT a partisan problem. This has been a time bomb waiting to explode for decades. Unfortunately, the Dem majority did ignore the lit fuse over the last two years;but, the strong environment of partisan politics we have right now made it almost impossible to see things from any other perspective than that of your own party leaders, which allowed this to “slip through the cracks”.
It’s sort of like blaming Bush for “letting” 9/11 happen. It was coming for years (through Presidents of BOTH parties). It’s sad that it has to be this way.
Thats very nice, but has little to do with capitalism or socialism. The pure forms of these were last seen in the 19th century.
Capitalism is when you let the markets solve its own problems. It works well in times of expansion, but results in disasterous business cycles,, depression and economic stagnation on the downside. A capitalist would let these companies fail then pick over their corpses.
Socialism is when the state owns the means of production. It works well and results in a more even economy with fewer highs and lows when the planners work well, but can result in wasteful shortages and surpluses when they do not. In the US we’ve nationalized utilities, banks, rail, oil, auto and steel industries when the need arose, to prevent ruinous business cycles.
The truth is that we live in a hybrid system. Historically, Republicans have ruined the economy. Hoover, Reagan and Bush charged up the credit cards to put corporations into high gear, They presided over brief prosperity, but their policies are Always followed by economic collapse. Clinton balanced the budget (something Republicans always talk about but never do).
But truly, Democrats do love having direct control more than Republicans, so they are in favor of the bailout, just as Roosevelt promoted the National Recovery Administration.
Wait until the American Public see what is in the bailout.Ties with A.C.O.R.N a community activist group involved in voter fraud and sub prime mortgages,This group backs the Democrats ,Frank,Reid and Obama..Guess who was their lawyer,Obama.Makes you sick.Lets vote the FRAUDs out of office.Time for the American Public to pay attention and bounce the lying bunch out of office.Yes they are promoting socialism and people don’t even realize it until its too late.God help us.Yes we will have a Change to a 2nd rate country.Greed and power over principals.
It’s an example of how government meddling affects capitalism.
Had the government not mandated that Fanny & Freddie offer loans to people who couldn’t pay them, then the real estate collapse would not have happened.
However, the monetary policy under Bush, Bernanke and Paulson was also wrong. Interest rates were too low and credit was too easy to acquire during a time of inflationary spending. Bush mandated this to make the economy look better than it was. (“False economy.”) So, everyone thought we had more money than we really did, since it was all based on over-priced assets driven up by loose fiscal policies.
Want an example? Inflation is over 6% and banks are running out of money. That means that cash should be really valuable (since no one can get a loan right now). But, I have plenty of cash in the bank and I still only get 3%-4% for it. Thus, it is undervalued. There wasn’t any incentive for me to keep cash at all. Just expand this same policy to multi-billion corporations and you’ll get my point.