Tuesday, September 30, 2008

The Non-bailouts

I am glad that for once Congress listened to the people and didn't sign the bailout. I was going to try to write a post about it, but I read two that say what I think so much better than I would. So here are a couple of links and quotes.

From Thomas Sowell (one of the smartest people in America if you ask me).

In other words, Congressman Frank and Senator Dodd wanted the government to push financial institutions to lend to people they would not lend to otherwise, because of the risk of default.

The idea that politicians can assess risks better than people who have spent their whole careers assessing risks should have been so obviously absurd that no one would take it seriously.

But the magic words "affordable housing" and the ugly word "redlining" led to politicians directing where loans and investments should go, with such things as the Community Reinvestment Act and various other coercions and threats.

And from JR at A Keyboard and a .45

The 132 Republicans and 92 Democrats who voted against the will of the Administration and Party Leadership deserve our thanks. Yes the Market tanked, as should be expected , but we now have a chance to figure out a much better way to resolve this crises. I am a believer in "Efficient Markets" and understand that the artificially inflated housing prices and shoddy lending practices have put us in a position where a free market type correction is going to be very painful. But I also understand that the .gov had a very large hand in creating this crises, and turning our financial markets over to the .gov will, in the long run, be even more painful.

This crisis was caused by greed, ineptitude and .gov intervention in the free markets. This crises was caused by people, people with names and faces. These people should be in stocks, literal or figurative. All the country, heck the entire world should see the faces of those responsible.

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