The bipartisan federal government intrusion into the current crisis was passed by both houses of congress and signed into law last Friday. Foreign equity markets plunged Monday and US market futures point to a dramatically lower open here in about a half hour. The general tone of the commentary seems to be, "Hey! What's going on? Didn't the feds solve this problem?!?!?"
Socializing risk while privatizing profit is not a solution. A few brave soldiers voted "NO", the rest followed the disastrous FDR model-- We don't know what we're doing but we have to do something!
Oh, this looks like fun... the Pelosi House will start hearings regarding the Lehman Brothers collapse today. Think Fannie/ Freddie and Barney Frank will be discussed? Don't count on it. Gallons of whitewash have been delivered at the back door of the Capitol this morning.
The federal government created massive housing credit havoc and the "solution" to this is a huge intrusion by the same federal government into our private markets. Because, you know, political hacks are so good at running money. Just imagine how much fun the next administration will have with a $1 Trillion treasure chest of goodies to hand out to those who play ball with them the correct way. Where did I put those "Buying Property in Belize" folders?
