President Barack Obama said he has “always been a strong believer in the power of free markets.”
By Daniel at 3 July, 2009, 11:49 am
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Yet his unwillingness to allow insolvent banks, businesses to die so that they could be replaced by healthy institutions is a contradiction of a free market!! A free market is free from government intervention, no governmental monopolies - government health care - and allows the market to adapt to the failure of companies.
The government has regularly rewarded failure, by bailing out AIG, Citi, BAC, GM, Crysler, Wells Fargo and others. The Federal Reserve is really quite something; a bureaucracy that was utterly blind to the financial crisis and is now asked by our President to oversee the “stability of the financial system as a whole.” If anything the Fed needs to be abolished once and for all! The Treasury and Fed will take on greater responsibilities while the underlying cause of our financial problems will continue to be ignored. Without investor capital there are no banks. We do not need to government to keep manipulating and fooling with the markets and giving out licences to banks to gamble with tax payer money! Profit and loss are the best, most effective regulators of all not the Government! A free-market profit/loss system ensures that those who treat capital well will be rewarded with more investment, while those who treat it poorly will be put out of business so that they can no longer bring harm to their customers.
I expect earnings to be pretty dismal along with mounting job losses. I do not see an economic recovery until 2010 and maybe beyond that if “cap and trade” is passed. It’s going to be a very cold winter… The crash is coming so prepare yourselves ! Happy 4th of July to all!
Some funny to share with everyone: http://www.youtube.com/watch?v=c5y_gE1Rb1Y&feature=PlayList&p=052BFBDC06022035&playnext=1&playnext_from=PL&index=16
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