The Housing Crisis; Today’s Market Crash

It's funny that I was pissed enough about the Mortgage/Housing Crisis that I ranted about it, and now today, the stock market has crashed, and more HUGE long time Wall Street businesses are bankrupt due to the housing and mortgage collapse. Premier Bush was quick to announce that his Dictatorship will not stand for businesses losing money, so he announced he will snap the backs of the American people to pay off the debts of these failed companies.

Socialist Obama, and McCain (who Ron Paul proved doesn't know crap about economics, see video below) have already condemned Bush's policies, but note that McCain won't actually name Bush as the problem, and Obama is still a Socialist. These aren't the men with solutions, and I don't mean to say that a president should be an expert on every subject, that's absurd, but the president must know the basics, and if they aren't experts, get experts, not opinions. There is a solution to this problem. In fact there are many solutions, but you have to have a solid, rational philosophy about how you will approach the problem.

Mixed economies can't work. You can't act like it's a free market, and then bail people out with tax payer money, you can't have a controlled economy, and then allow small businesses to fail. A company CEO won't know what to do. Sometimes America decides you're too successful, and you get split, like Microsoft. Sometimes America decides you're not allowed to break down, and they dump billions of tax-payer dollars to bail you out, but your ship will only sink more slowly, like the airlines. And sometimes America decides that they want to be bigger and so they buy out failing businesses making them federal property like they did with the previous mortgage collapsed companies Fannie and Freddie. But there are few rules. There is no all encompassing official policy, the first example was under Clinton, and the other two were executed by Bush, but many years in the making. Fannie Mae and Freddie Mac were both invented by the government, and have always known that if they were to fail in their ventures, their contracts promised the American taxpayer would bail them out. Even when companies illegally screw over America, sometimes they get punished, and sometimes they don't, look at Enron. They robbed California blind when power deregulation hit and we had rolling black-outs. Just two years later, after having reported company record setting profits, they declared bankruptcy, the heads of Enron, took their money and ran. And I'm not saying they took their earnings and ran, I mean they gouged California, lied about their profits, and TOOK EVERYTHING. They cashed in their stocks, they screwed over all their employees. Did America do anything? No. Maybe they should go back to Microsoft and fine them some more to make up the costs. Do you see? You can't argue that both acts were just, either you're hands on, or you're hands off, but look how it plays out, Microsoft, who never did any bad, only good, was destroyed by the government. Enron, who lied and stole, no punishment.

I don't want to blame any president for a bad economy. It should not be the president's job, nor should the president have the authority to control the economy, but I can tell you, meddling with the economy can have negative consequences. Bush wants to bail out these companies. SOMEBODY has to pay. Who do you think it will be?

There are of course many more issues, and I'm sure I don't understand half of them. One obvious issue is the budget and taxes. Bush promised to lower taxes, and he did, but then he spent even more money than Clinton! Because it is impossible to force money into existence by decree, the cost had to come from somewhere, obviously the government is over spending without paying back, so who is paying for it? One direct result of spending money that doesn't exist is a "national debt" basically it's the government spending more than it owns, so it's in debt to itself. Since it is a constantly moving system, the debt doesn't just collect somewhere waiting to be paid, it is taken from the economy, the value of the dollar goes down, compared to other nations. Because the dollar is worth less, companies can't sell their products overseas for the same profits, and individuals can't buy foreign products with the same money. So we are paying for the debt, it's worse than just raising the taxes, but nowhere near as good as lowering taxes and having a government not overspend. And it's just like those bad debts people get into on their own, if we don't pay it off, if we don't budget, we can't just let it pay itself out. We will only get deeper and deeper in debt.

There are piles of problems, just give a google search and let the economists all over the internet give you a crash course on any number of issues and their history. Neither candidate is talking about these issues. Not really. So don't expect either to solve any of these issues, not really.








McCain Attacks Ron Paul, and Ron Paul owns him: