Thursday, October 9, 2008

Free the Market!

This article from Fox News would have me in stitches, if this weren't so serious.

What I find sad is that no one in a public position is looking at the one thing that can save this situation.

A free, capitalist market.

Not a market where companies hide their debt in offshore accounts and "invisible" credit default swaps.
Not a market where the government tries to prevent insolvent companies from being broken up and sold to other companies that can run them better.
Not a market where you keep throwing money at it until hyperinflation ends any hope you had at being a world power.
Not a market where you attempt to artificially keep home prices higher than they should be by attempting to keep people who can't afford to pay for them living in them.

Over and over we hear "we need to stop the price of homes from falling". What hubris! What gall! Government doesn't dictate any pricing to a free market! Let me say that again - NO ENTITY can dictate the prices of ANYTHING to investors. People who play with money for a living are smarter than that.

The market determines what people will pay for a good or service. And that's how we're now in this mess. We have a bunch of egomaniacs running this country, Democrat and Republican, that seriously believe they can somehow wave a magic wand and everything will go back to what it was last year.

The only problem is - the people with the money have woken up. Their eyes are now opened on what is truly going on, and they don't like what they see. And parlor tricks with an interest rate that is already too low, throwing money at insolvency, and trying to sell TBills that are barely worth the paper they're printed on isn't going to suddenly entice them to play ball.

Once again, as I did last month, I call on Congress and the Executive:

Let the free market reign!
Force companies to disclose their actual assets and debts, shine a light on credit default swaps, and LET INSOLVENT COMPANIES FAIL.

And most of all...

No comments:

Current Quote

"I would rather be exposed to the inconveniences attending too much liberty than to those attending too small a degree of it." – Thomas Jefferson