AmericanPapist Comments
1 Trillion! Really?... Really?!
I have no problem blaming Republicans for the current economic crisis, but still shuddering at the thoughts of Democrats taking it over. I mean, that amounts to taking control of the economy out of the hands of the morons who abused it, and putting it the hands of the lunatics who would savage it.
"if we are to pray for something as general as "world peace," then "economic well-being at home" seems equally needful."
The two things are inseparable.
I've placed my image of the Infant of Prague in a prominent place in the house. That's the only sure response I can think of... [aside from panic, despair, bleak hopelessness, fear of hunger and thoughts of grilling the dog with a dash of Worcester Sauce]
The market would be better off if these companies just tanked. The more the government gets involved, the worse it gets. Near as I can tell, the biggest problem these companies have is that they are not equipped to deal with the collateral on these bad loans and mortgages, i.e. the houses. So they will have to sell them at a loss and take a nasty hit. Big deal.
That's how it should work. Crappy business practices cause a business to crap out. Capitalism is not to blame. In a capitalistic mindset, a loan company would not write sub-prime loans in any great amount or quantity because they risk loosing a lot of money. (Credit ratings and loan applications have a purpose, they give a very accurate financial picture and protect both the borrower and the lender.) That is unless someone is willing to back these unreasonably bad deals. Enter the US Congress.
Senator Dodd (D) has been one of the primary pushers for "affordable housing" which means "mortgages to those who can't afford them". This is what is causing the problem and my heartburn. The government is pushing for bad loans and then asking me, and other people who get to keep only 2/3s of their paycheck before bills, to cover it. Government money is our tax money. On top of that he and others don't want to evict those who foreclose so we can't even recover the cost.
As an aside, I would point out that all of the companies that have/are being bailed out contribute primarily to the Democrats, who are in control of congress, not the Republicans.
My thoughts are precisely summed up in this piece by Ron Paul from CNN.com today...
http://www.cnn.com/2008/POLITICS...lout/
index.html
More goverment intervention only keeps the prices of these assets artificially high. The market will never be fully corrected until the government backs off!
And, bring the Gold Standard back while you're at it :)
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