In wondering why the Administration wants more power to “regulate financial institutions,” Jennifer Rubin offers a rhetorical summary of the Democrats and the financial mess:
This really goes to the heart of the entire critique by Democrats and much of the media — that our present difficulties are the fault of “deregulation.†Based on this faulty diagnosis the cure they propose — more regulation — is, not surprisingly, the wrong one. It was a government entity — the Fed — that left the credit punch bowl at the party too long. It was a government entity — Congress — that passed fair housing laws compelling lenders to make loans to the credit-unworthy. It was government sponsored entities — Freddie Mac and Fannies Mae — that went hog wild on sub-prime mortgages. It was Congress again that refused to reel in Freddie and Fannie. And it has been a series of churning, expensive, and laborious machinations by the Fed and Treasury which are causing us to funnel trillions into institutions while micromanaging and ultimately harassing their management.
As she reminds us yet again of the Democrats blaming “deregulation” I decided to check my post where I asked readers who bought that “‘deregulation theory’ of the meltdown to identify the specific legislation [then-President George W.] Bush signed deregulating the financial industry and the specific policies he and his Administration enacted.”
None had.
All around Budapest, Hungary are multistory apartment buildings built in the communist era. When Hungary was freed and private property was reestablished, people were permitted to own their apartments. However, there was no effort to organize a condominium structure for the general maintenance and upkeep of the apartment building the apartments were in. The first thing to go was the elevator system. People on the first floor were far less concerned than people on the 10th floor. Soon, people from a building with no elevator service would go to an adjoining building and take the elevator to the roof to walk over to their building and down to the 9th floor. So, the extra traffic in the second building caused that elevator system to fail.
I mention this because it might cast some light on what goes on when the dilettantes in Congress fool around with “regulating” and “directing” the FED, Fannie and Freddie and big business in general. Jennifer Rubin puts it perfectly:
Bold moves in reorganizing the natural flow of the economic system usually stumble over a small stone stuck in the shoe.
Guess what else the Democrats are doing? Systematically persecuting, and thus destroying, the private companies they claim to want to ‘save’.
Hat tip Ace for the item I just re-posted.
#2 – ILC, it sounds like the same strategy the Dhimmicrats used during the Vietnam War in the 1960s. They had to destroy South Vietnam in order to “save” it.
Some viruses never die.
Regards,
Peter H.
Peter, ain’t that the truth. Sheesh, don’t get me started about Vietnam. Take a noble and worthy goal – saving people’s freedom – and then blow 50,000+ lives as you micro-manage the war, never fight to win, fight it using conscription (a contradiction of the goal), etc. It takes a left-liberal administration to screw it up that horribly.
There isnt anything being done that the government cant do a worse job at. Take something like fighting fires in the Southwest. Several years ago there was a fire in Palm Canyon (south of Palm Springs). There was a dirt road leading directly to the fire. My fathter and I pointed it out to the local fire fighters. Unfortunately, the Feds took it over. They were managing the fight from 30 miles away. Needless to say, it took two days for the Feds to decide to use the road to fight the fire. The fire jumped the canyon and burnt down most of Pinyon Flats. Guess what, the Feds decided to investigate and find out what went wrong. What went wrong, idiots is that you didnt use the road to the fire!!!
taking economic advice from a republican is like asking a gerbil for help with your calculus homework.