Freak-o-Nomics

From the Washington Times

Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke told Congress this week that failure to pass the Bush administration's proposed $700 billion bailout will lead to dire consequences for the economy. Mr. Bernanke said that if the plan were not enacted, markets would be further embattled. This would result in higher unemployment, more foreclosures and an economic contraction. In simple terms: In their opinion, without immediate action, there will be a recession. Yet we know a better term for recession: market correction. Why are we suddenly so afraid of an economic downturn – to the point that we have to gamble $700 billion of taxpayer money?

Since the inception of capitalism in the 18th century, there have been periods of boom followed by periods of bust. Despite the attempts to mitigate these with government intervention since the Great Depression, there have still been periods of boom and bust. This is the natural result of the law of supply and demand. Recently, we had a housing bubble in which investors made huge profits; now the bubble has burst and investors are losing money. That's capitalism. Let those who invested wisely, soar; and those who did not, fall. It's called an economy for grown-ups.

This "crisis" has been brought on by homeowners, lenders and bankers who made bad judgments. Let them bear the consequences of their actions. Furthermore, by the account of most analysts, a recession is coming our way, regardless of whether there is a $700 billion bailout. And Americans will weather it, as we have so many times before. Since 1854, there have been 32 cycles of expansions and contractions.

Are we really now heading toward a Great Depression?

The answer is: no. Are Americans a little spoiled? Yes. Are these uncertain economic times? Absolutely. Is a bailout the answer? Absolutely not.

Recall that similar fears have been stoked before. The savings and loan crisis of the 1980s and 1990s, the dot.com collapse of 2000, and the accounting scandals that afflicted MCI WorldCom, Tyco and Enron were all moments of turbulence. The fearmongers then also predicted economic meltdown - and it did not happen. It is also well to remember that there remains great debate about the cause of the 1929 stock-market crash and its relationship to the Great Depression. Parallels to today's vastly different market are overstated.

Attempts to prevent the market from meting out reward and punishment are not to be feared. What is cause for concern are meddlesome government initiatives - otherwise known as socialism - that emerged in the bailout framework.

Housin' Crisis?

Aunty is feelin' stern today.

The housin' an' mortgage crisis is enough to sour anybody's stomach, ain't it?

Here's the thing:

Havin' yore own house or condo ain't a Universal Human Right. Neither is a collich edoocation.

These thangs is stuff ya should EXPECT will take hard work and sacrifice.

But we's had too many years of politicians on BOTH sides of the aisle that led us'uns to think that somehow the right to a Ph.D and a 4/2.5 ranch in suburbia is in the Bill of Rights.

An ya'll, this OUR OWN fault. Yeah yeah, I know, the politicians LIED to us, and they's scoundrels and they's fat cats who cheated and stole us blind.

But we let 'em.

They tickled our ears wif' what we wanted to hear on our pet issues so we pulled a lever and set them up in office to do us harm.

They bought yore votes wif' promises to give ya' what ya' "deserve" din't they?

Looky, ya doan "deserve" no house. Nobody "deserves" college. Ya' EARN those thangs, folks. Affirmative action housin' was an ideology, folks, not a fiscal theory.

This here is true: city wants builders to build "affordable" housing. City will donate land (that it stole from landowners by condemnation) and "qualify" affirmative action home buyers wif federal gubmint grans (thas' YORE tax money) .

Builders submit house plans. City rejects plans because the plans only have one car garages.

Ya'll git that?????

Well, blow me down, the "poor" who "need" affordable houses cain't be expected to live in no shack wif jes' a one car garage, doan'cha know.

Nobody "deserves" automatic career advancement when they's doin' a lousy job, but gubmint hounds employers into promotin' on criteria other than merit...thas' all donkey doo doo. We worriet about people havin' a "right" to come to work dressed like a escapee from the freak show, an' din't care if this clown made sales drop cause customers doan wanna eat food cooked or served by revolting lookin' clowns, an' a small bidness takes a hit, mebbe goes down the drain.

In case I ain't made it clear, we sold ourselves to sweet talkin' snake oil salespeople who took us fer the suckers we is. We wanted easy street, we wanted "our" cause to get breaks and perks, we demanded the gubmint solve local problems...oh we was sittin' ducks, an' the played us like fiddles. Classic sales technique: sell a vision that the buyer wants (nevermind the reality)

We jes' all hoped that when the bill came due our own thang was secure and to heck with the old idea of the "common good".

So folks, next time a hayseed says "vote fer me" cause what I promise is to keep missles outa yore hair, but you will have to do the rest---you'll have to work hard, save yore money, go to night school, pay back yore tuition loans, make do wif' jes 2 TVs, grow a garden, pay yore own doctor and hep yore neighbor...ya'll vote fer that fella, ya' hear?