[Deep Freeze] Thursday, October 09, 2008 11:16:26 AM
OK readers! It is finally time for my first, official rant since my return!
Most of you here in the US are aware of the "financial crisis" we are experiencing. I have ranted in the past on this subject and, LONG before it actually occurred, I said much of what I will say now. ( I mention this only as a foundation for credibility!!) People in this country are screaming about greed and capitalism. Financial turmoil! Government indifference. HOGWASH!! Let us look at the facts, people;
Can ANYONE actually produce the gun that was allegedly held to the temples of the borrowers that put little to NO money down on their homes, took a "teaser" (low) interest rate and then pleaded ignorance or victimhood when the lender- as stipulated in the friggin contract-jacked up their rate??!?!??! These people EXPECTED some kind of government or taxpayer intervention that would shield them from the consequences of their actions. This creates something I was taught in college as "moral hazard", which is behavior based upon the knowledge of protection from bad consequences or irresponsible choices.
Now folks are yelling for more regulation. We already have PLENTY of it! Anyone ever hear of the Office of Federal Housing Enterprise Oversight???? This agency exisits for ONE reason; to regulate FREDDIE and FANNIE. That's right! Already in place! Wow! Regulation, people! I just do not see this as some kind of "indictment" of capitalism. Sorry. Not there.
What if we all just actually TRY real capitalism for once??? Capitalism has been defined as, "what people do if you leave them alone". Let them make their own mistakes. Suffer consequences. Sink or swim.
In the 1930's, before Roosevelt's New Deal, we paid about 12% of our income to ALL of government (state, local and federal). Today it is about 40%! *ouch* I suppose that in itself does suggest failure but I say it is a failure to practice TRUE capitalism. A failure to accept consequences and believe in real value. A failure to be RESPONSIBLE.
