Sunday, March 1, 2009

Response to Jason who commented on my Obama wants to "Force" Companies, below...

Huh? are you serious when you ask if the federal government would really be worse than private banks? Go back and take a look at why banks are in trouble... and you will see a tremendous amount of meddling by the congress in establishing ridiculous lending standards to make it easier to buy homes (i.e. 100% + loans, no down payments, relaxed to almost non-existent qualifications, etc.) and actually threatening banks who did not abide by the cra standards... Oh and then Freddie and Fannie became the "parents" of the system by buying up half the mortgages in sight without a clue as to what percentage were even good... Yes they allowed Wall Street an avenue to be greedy by trading in these bundled mortgages... Then there is the Fed who kept interest rates artificially low; that combined with all the other meddling created a huge housing bubble, in other words they didn't let the free market work, they manipulated it to social engineer the "right" to own a home. I would much rather have the Feds stick to insuring banks and not owning them and not manipulating the market that either forces or induces banks and financial institutions to make bad decisions instead of relying on free market principles. The fact is, I do not want a government determining outcomes... we succeed or fail based on what we do in a free market... at least that what I want.
Oh yeah, besides national defense and interstate highways systems, what has the government done that is better than the private industry? Does the post office come to mind, maybe Amtrak?

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