Friday, October 10, 2008
Pull Off The Economic Band-aid All At Once
Last updated Oct 9 at 4:07 PM ET
DJIA - 8,579.19 down 78.91 (-7.33%)
S&P 500 - 909.92 down 75.02 (-7.62%)
NASD - 1,645.12 down 95.21 (-5.47%)
What happened with Fannie and Freddie and of subprime loans, didn't happen because of too little regulation in the Free Market, it happened because of too much regulation and interference with the Free Market. The fallout from these shining examples in Liberal redistributions of wealth wasn't created from within a Free Market.
Wall Street is the fault of Democrats.
Many world markets are experiencing the same national financial angst, the government coming to the rescue of risk. Since when did it become any government's job to insulate individuals from financial risk, considering that the markets are really nothing more than legalized gambling?
We've seen the reasoning given for the bailout fall flat; "as soon as the market sees this bailout bill coming, it will rebound." Well, not so far.
There will be another business sector that, if not propped up by a bailout, will see huge solvency issues, perhaps bankruptcies. Some say that sector is the insurance industry. From Business Daily Africa:
...the $54,000 billion credit derivatives market is facing a big test this month as contracts of defaulted derivatives on failed companies like Fannie Mae, Freddie Mac and Lehman Brothers are due for settlement. This could result in billions of dollars of losses for insurance companies and banks.
We are prolonging a recession by trying to temporarily prop it up. We can't continue to do this or can other countries.
Pull the Band-aid off, we all scream once for a really long and loud time and then the healing will begin, the worst will be over.
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