I haven’t been blogging much recently I’ve tied up a couple of projects that have to be finished before the end of the year, and frankly I’m so disgusted, disappointed and disillusioned with the behavior of our elected leaders my give a damn’s busted.
It doesn’t matter what we think, they’re just going to keep printing money, running up the debt and pushing bailout after bailout and stimulus package after stimulus package… none which are going to help get us out our current economic mess.
Any way here’s a few must reads:
First up is Harvey Golub’s Wall Street Journal Op Ed titled “Getting Out of the Credit Mess”
To begin to understand today’s problem, we have to have a sense of how we got there. Between 1994 and second quarter 2008, the U.S, housing stock more than doubled in value from $7.6 trillion to $19.4 trillion. Almost three quarters of that increase was due to a speculative bubble, the root cause of which was government policies designed to increase home ownership, largely among people who would be considered nonprime borrowers — i.e., people without sufficient documented income or employment history and little or no savings or credit history.
The intellectual start of this mess was in a flawed Boston Federal Reserve study published in 1992 that purported to show that minorities were treated less well than whites. That study led to increased political pressure on banks to modify their standards with increased emphasis through the Community Reinvestment Act, and aided by U.S. Department of Housing and Urban Development regulations in the Clinton administration that required parity of outcomes in the lending process.
The effect of all of this meddling was compounded by the lax or incompetent supervision of Fannie Mae and Freddie Mac. All in all, the government got into the business of encouraging and then forcing lending institutions to make mortgage loans to people who could not pay them back. What we ended up with is a failure of government, which we have erroneously termed a failure of capitalism. Read the rest…
The second is a Newsmax.com piece titled “Four Big Lies about the Big Three Automakers” by Dan Weil
Third is a CNSNews.com piece by Matt Hadro titled “Obama’s ‘New Deal’ Not Likely to Cure Economy or Unemployment Rate, Free Market Economists Say”
It’s time our elected leaders faced reality admitted their own culpability in this mess and realized they can’t simply keep printing money and trying to spend our way out of this economic downturn.