The Economy Eclipses the Sun - Part 2 of 2

Capitalism

Capitalism HAS NOT failed! It has been replaced by some monstrous creature called Fascism. The country has been heading towards Communism for many years now, with all kinds of small bailouts, often for lazy people. Don’t get me wrong, I’m all for helping people whenever I can, but the decision should be made by the individual, NOT by the people running the country.

Their job is to protect us and NOTHING MORE!

Responsible

So if capitalism hasn’t failed, who IS responsible for the economic mess we are currently in? The answer is, the VERY SAME PEOPLE who are now telling us how to fix the problem, the ones who NEVER SAW IT COMING in the first place, even though they were the cause of it.

THEY are telling us that the problem was caused by greedy capitalists. There WAS greed involved for sure, but not by businessmen, who are the very people (and their fathers and grandfathers) who made it possible to live in the wealthiest society the world has ever known.

How Did They Do This?

No, instead, what happened is that because of government regulations, lenders (such as Freddie Mac and Fannie Mae etc.) were encouraged to lend people money when the chances were high that the borrowers would default on the loans. They were ENCOURAGED to make bad business decisions.

Then, when the housing bubble burst (which it HAD to do because houses can only ever be worth what somebody can afford and is willing to pay, the powers that be decided to print some money and give it to these lenders. Under capitalism, those companies would have simply gone out of business, because they would have been bought by EFFICIENT companies who wouldn’t make bad decisions.

Conclusion

As I write this, the economy SEEMS to be improving. IT ISN’T. While more people are losing their jobs, the economy cannot recover. The stock market gains are simply a reflection of people feeling good about things, because they believe the nonsense they’re being told.

The housing market SEEMS to be improving because more houses are being sold. There ARE more houses being sold, but this is for two reasons:

1. House prices are now HALF of what they were one year ago.
2. New buyers are being encouraged to get into debt, yet again, by tax incentives

It would appear that people cannot, or are unwilling, to learn from their mistakes, be they private individuals, or people in charge of nations.

If you missed it, you can read Part 1 here.

Luke.