Here is a great article on the Sad Truth of our Economy. Socialism always brings collapse. For the last 6 years the Democrats have driven our economy down a road that even the communists got off of. Under Obama they have pushed the pedal to the floor. If he gains control of the House and Senate next election he'll drive the car right into the wall.
DAVID STOCKMAN: We've Been Lied To, Robbed, And Misled
Then, when the Fed’s fire hoses started spraying an
elephant soup of liquidity injections in every direction and its balance
sheet grew by $1.3 trillion in just thirteen weeks compared to $850
billion during its first ninety-four years, I became convinced that the
Fed was flying by the seat of its pants, making it up as it went along.
It was evident that its aim was to stop the hissy fit on Wall Street and
that the thread of a Great Depression 2.0 was just a cover story for a
panicked spree of money printing that exceeded any other episode in
recorded human history.
David Stockman,
The Great Deformation
David Stockman, former director of the OMB under President Reagan,
former US Representative, and veteran financier is an insider's insider.
Few people understand the ways in which both Washington DC and Wall
Street work and intersect better than he does.
In his upcoming book,
The Great Deformation: The Corruption of Capitalism in America ,
Stockman lays out how we have devolved from a free market economy into a
managed one that operates for the benefit of a privileged few. And when
trouble arises, these few are bailed out at the expense of the public
good.
By manipulating the price of money through sustained and historically
low interest rates, Greenspan and Bernanke created an era of asset
mis-pricing that inevitably would need to correct. And when market
forces attempted to do so in 2008, Paulson
et al hoodwinked the
world into believing the repercussions would be so calamitous for all
that the institutions responsible for the bad actions that instigated
the problem needed to be rescued -- in full -- at all costs.
Of course, history shows that our markets and economy would have been
better off had the system been allowed to correct. Most of the "too big
to fail" institutions would have survived or been broken into smaller,
more resilient, entities. For those that would have failed, smaller,
more responsible banks would have stepped up to replace them - as
happens as part of the natural course of a free market system:
H/T Pete Moore, ATW
