It happens anyway, and it's just in time to set up the next crisis


You were warned. Now you have to choose
This is why I get discouraged some times.

I tell people what's going to happen.

They pooh-pooh me and tell me I am over reacting.

It happens anyway.

And it's just in time to set up the next crisis.

I told you that any government intervention would just make things worse. I told you that choose certain companies to bail out while ignoring others will just place all of them firmly under government control.

I told you that economics isn't that complicated unless someone is peddling special privileges. I told you it's a myth that Government Knows Best and that the current crisis is a Failure of the Free Market.

I told you that doing nothing would show that the free market could take care of itself without government getting involved. That the free market could do it better without the government's "help."

I told you that the CEOs and CFOs of the companies that accepted government bailout would be reduced to lapdogs and subject to the whims of a Congressman or the bullying of a few technocrats.

I told you how government interference usually had a huge and almost completely unforeseen influence on marginal behaviors, often resulting the very thing that the politicos said they were trying to avoid.

I told you that the Democrats wanted you dependent (not that the Republicans were much better).

I told you that the normal economic rules would fail as long as government tried to call the shots because no one knew what the long term consequences were.

I told you that the American government was acting like something out of the Godfather films even before January 20th.

I told you that the new competitive advantage was having the Federal government back a companies debt despite what the stockholders want.

I told you about the Federal Government selectively hiding the bailout numbers almost like they had something to hide.

So why is this important?

Because it looks like our dear Federal government wasn't exactly honest about the bank bailouts. And when the Bank of America CEO found out about it and tried to back out, he was threatened.

Because our dear Federal government has stolen money from the Chrysler and GM bondholders to put the UAW on the board and with more of the company than it purchased. Those bondholders would have gotten 85% to 100% of the money back, now they will be very lucky see fifteen percent even if there is a bankruptcy.

Actions have consequences.

If existing contracts and agreements can be modified at the whim of politicos and technocrats, then why should anyone risk their money?

I can't stress that enough.

No one wants to risk money.

And according to the Obama administration, that's why the economy isn't turning around fast enough.

That's just the primary result.

Let's look at some of the secondary results.

Right now I wouldn't buy a GM or Chrysler car if you paid me three times what it was "worth."

Right now I wouldn't deal with a bank or insurance company that had accepted any bailout money.

I'm not alone in that either. Americans all over have watched the feeding frenzy and understand that something is fundamentally wrong.

Meanwhile, the Federal government and the politicos gets away with things that would mean long prison sentences if they were done in the private sector.

Obama "didn't start the fire," but he's the one that poured fuel on it until it destroys everything in it's path.

There's no going back now. It's me, the guy who hates either/or choices telling you this. We can submit to a tyranny more terrible than any in history, or we can pull it down and start again.

Governments at all levels are out of control. The only thing stronger is individual people deciding that enough is enough.

— NeoWayland

Posted: Wed - April 29, 2009 at 02:10 PM  Tag


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