Okay, I’ll be the first to admit that finding a real solution to the current chaos in the financial markets isn’t exactly an easy thing to do. I tend to be against large-scale government intervention in the marketplace, yet this current crisis is a direct result of the federal government’s politicizing of the home mortgage market, so they might have to fix the mess just to ensure we don’t get doubly hosed. Sweet.But while I’m personally not sure how to fix things – a shocking revelation for a blogger to make, I know – I am pretty confident that the way to not attract votes to a $700 billion rescue plan is to go before the House of Representatives as its Speaker and proceed to say the following:
It is a number that is staggering, but tells us only the costs of the Bush Administration’s failed economic policies””policies built on budgetary recklessness, on an anything goes mentality, with no regulation, no supervision, and no discipline in the system.
Democrats believe in the free market, which can and does create jobs, wealth, and capital, but left to its own devices it has created chaos.
Unfortunately, that’s exactly what Speaker Nancy Pelosi said in a speech just before the bill was voted down. Granted, in theory the Democrats didn’t need a single Republican vote to pass the bill. After all, they hold a majority. But practically speaking, the bill needed bipartisan support to have a chance. And this type of talk doesn’t exactly smack of cooperation and unity.
Also, her points are flat-out wrong.
While there’s plenty of blame to go around on both sides of the aisle, that blame has to do with increased – not decreased – regulation bent on getting as many people into homes as possible. Bad credit, no credit, no money down? Not even proof of a job? No problem! Not when government agencies – and Democrat favorites – Freddie Mac and Fannie Mae are around to buy up the bad paper. And we wonder why the subprime mortgage market tanked. Gee, that’s a tough one.
But what does that have to do with Bush’s economic policies? I mean, I’m only a half-fan of his policies and I can’t make the connection. (For those keeping score at home, I believe lower taxes are good, but spending like a Beverly Hills housewife is bad.) If it wasn’t for this subprime mortgage mess, the worst we might have are some large deficits. Not that huge deficits are delightful, but I’d take them over the current status.
I also think Pelosi’s statement about the free market is a hoot. Seriously, left to its own devices the free market creates chaos? I’ll grant that the market needs rules to ensure fair play, but that’s not what she’s talking about. She’s asserting that, by definition, the free market requires government intervention to function correctly. Ummm. Yeah. Because that’s always worked out so well in the past everywhere it’s been tried.
Of course, the fact that this whole mess is the result of too much government-attempted social engineering within the market apparently needs to be forgotten.
Yeah. Don’t think that’s going to happen this time.
Later,
Fox