News Flash!
Today the Federal Reserve injected a total of 630 billion dollars in the financial system in an effort to alleviate the lack of liquidity.
So while Congress is fighting back and forth over this bail out plan (or rescue plan, depending on which spinster you talk to), two miles away the Federal Reserve found 630 billion dollars and threw it into the market.
Odd how this story is being so widely ignored while the crash and burn of the 700 billion bailout makes the headlines. Is this 630 billion not as important as the other 700 billion? The 630 billion wasn’t here this morning – it’s being printed on high powered color printers as we speak.
No vote, no debate. Now we know who’s really running the Country.
Monday, September 29, 2008
Friday, September 26, 2008
Rome is not burning
At some point in our lives we've found ourselves being forced to make a decision out of fear. When we take a step back and look at the issue with a more rational lens, we see things quite differently. On the other hand, when we let fear motivate our decision we often find out later on just how bad of a decision we made.
This is where we stand today, with our esteemed leaders irresponsibly running around crying the sky will fall on Monday if we don't take 700 billion tax payer dollars and throw it at a problem. I don't buy it, and I'm far from alone.
While Congress, Paulson and the President plot to spend our money, take away whatever is left of capitalism, and still not have an inkling of a real solution, JP Morgan buys out Washington Mutual. Like Bear Sterns, JP Morgan got a great deal - this is the free market in action. This buyout did not cost taxpayers a dime.
So where's this 700 billion coming from? Two sources - our taxes or they're going to print more money. Is a massive tax hike or long term inflation in order to bail out companies that only deserve bankruptcy a better alternative than a recession that will likely occur anyway?
This 700 billion will be one of the largest government expansions ever, and we don't want our financial markets turning into the DMV. I'm not saying stand back and let Rome burn. But with buyouts like Merrill Lynch and WAMU happening on their own, let's not rush to interrupt the free market from correcting itself when there's still companies out there who can recognize an opportunity in the face of adversity.
If you agree, contact your congressman or congresswoman and let them know to slow down their 700 billion shopping spree.
This is where we stand today, with our esteemed leaders irresponsibly running around crying the sky will fall on Monday if we don't take 700 billion tax payer dollars and throw it at a problem. I don't buy it, and I'm far from alone.
While Congress, Paulson and the President plot to spend our money, take away whatever is left of capitalism, and still not have an inkling of a real solution, JP Morgan buys out Washington Mutual. Like Bear Sterns, JP Morgan got a great deal - this is the free market in action. This buyout did not cost taxpayers a dime.
So where's this 700 billion coming from? Two sources - our taxes or they're going to print more money. Is a massive tax hike or long term inflation in order to bail out companies that only deserve bankruptcy a better alternative than a recession that will likely occur anyway?
This 700 billion will be one of the largest government expansions ever, and we don't want our financial markets turning into the DMV. I'm not saying stand back and let Rome burn. But with buyouts like Merrill Lynch and WAMU happening on their own, let's not rush to interrupt the free market from correcting itself when there's still companies out there who can recognize an opportunity in the face of adversity.
If you agree, contact your congressman or congresswoman and let them know to slow down their 700 billion shopping spree.
Friday, September 19, 2008
The end of Free Market Capitalism
If you're watching CNBC, Fox Business or any other financial channel you're hearing the same mantras every day.
"We had to bail them out, otherwise there would have been a major financial meltdown."
"This is the purpose of the government, when the free market loses control."
WRONG AND WRONG.
The essential purpose of the free market is you have good times, and you have bad times. The mortgage and financial companies make irresponsible decisions. If you and I operated like they did we'd be in debt up to our ears with no lifeline. All because we're not "too big to fail".
So what's the moral of this? If you're going to make irresponsible decisions, just make sure you do it at a magnitude that can hurt the maximum amount of people possible. If you do it any less, nobody cares to help you. Just make sure you're too big to fail.
So, now that the government comes in and buys up all the debt. No big deal, they'll just print some more money. All the financial institutions face no punishment for their decisions, and get to do it all over again. You and I get to pay this for the rest of our lives.
Welcome to the United Socialist Republic of America.
"We had to bail them out, otherwise there would have been a major financial meltdown."
"This is the purpose of the government, when the free market loses control."
WRONG AND WRONG.
The essential purpose of the free market is you have good times, and you have bad times. The mortgage and financial companies make irresponsible decisions. If you and I operated like they did we'd be in debt up to our ears with no lifeline. All because we're not "too big to fail".
So what's the moral of this? If you're going to make irresponsible decisions, just make sure you do it at a magnitude that can hurt the maximum amount of people possible. If you do it any less, nobody cares to help you. Just make sure you're too big to fail.
So, now that the government comes in and buys up all the debt. No big deal, they'll just print some more money. All the financial institutions face no punishment for their decisions, and get to do it all over again. You and I get to pay this for the rest of our lives.
Welcome to the United Socialist Republic of America.
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