If they had just let the market cleanse itself, and let the bad companies go bankrupt, instead of running around like lunatics with a different plan every day, would we be better off right now?
Methinks 'twas so.
Capitalism is messy, free markets are messy, but you need to trust them. Once you're banning short sales, closing down trading, propping up some companies while not propping up others, and rushing around trying to stop asset prices from falling, well, then this is what you get.
But now, here we are. Now we have a disaster. Because of a total and complete loss of confidence and trust.
Having Paulson, Bernanke and Bush running around for a year saying "subprime is contained", "the fundamentals are strong" and then a few days ago do a 180 and tell us the world is ending unless we cough up $700 billion within hours, well, that didn't do much for trust or confidence folks. At that point, they were exposed as liars at best or incompetent and clueless at worst.
When history writes the book, they'll find that our government got us into this problem by not properly regulating the financial affairs of the land, because they were corrupted by the REIC. And then our government accentuated this problem with its haphazard, scatter-shot, unpredictable, dishonest and panicked response.
And people obviously don't trust monkeys.
The Government Is Contributing to the Panic - It's time to let markets do their messy work.
Despite all the hard work and good intentions on the part of our public officials, when economists and historians look back on the current financial crisis they are likely to conclude that government intervention prolonged and deepened it. In particular, officials at the Federal Reserve, the Securities and Exchange Commission and the Treasury Department are to blame for publicly losing confidence in the very economic system they are supposed to protect.
The Fed, the Treasury and the SEC appear to be in a state of panic. A crisis mentality led the custodians of the U.S. capital markets publicly to jettison their lifelong commitments to the capital markets in favor of a series of short-term regulatory quick fixes. Even more troubling, for the past several months the doyens of U.S. fiscal and monetary policy have ignored the most fundamental principle of central banking, which is that the primary responsibility of central bankers is to promote stability and to maintain confidence in the capital markets. Our central bankers appear to have suddenly lost confidence both in their own abilities and in the standard tools of fiscal and monetary policy.
October 12, 2008
Did Hank Paulson, Ben Bernanke, George Bush and the monkeys in Congress crash the stock market and just make matters worse?
Posted by blogger at 10/12/2008