Posted on 06/30/2009 6:44:01 AM PDT by SeekAndFind
The blunt truth is that even if we had had President Obama's financial regulatory "reforms" in place four years ago--reforms designed to prevent another financial meltdown--we would still have experienced a horrific economic disaster. In other words, the Administration's prescriptions deal with the symptoms--and those badly--not the underlying causes.
The astonishing housing bubble could not have happened without the Federal Reserve's easy-money policy, which got under way in late 2003. If not for the excess liquidity created, there would not have been sufficient fuel to distort the housing market and ultimately the financial system. Yet President Obama has remained mum regarding the need for a strong and stable dollar. Without such a policy it's guaranteed we'll continue to experience financial turmoil.
The Fed's punishment for its wretched doings is that Congress will likely give it more regulatory powers. That's the thing about government: The more it fails, the more power it accrues.
To respond to criticism that the Fed is becoming too powerful, the Administration is proposing that the Fed get permission from the Treasury Department before it takes "drastic" action to stabilize the economy. Hamstringing or inhibiting such vigorous action is ludicrous. The Fed should respond to panics in the same way we respond to natural disasters: Take immediate, overwhelming action, then pull back as the crisis recedes.
Right up to the government takeover of Fannie Mae ( FNM - news - people ) and Freddie Mac ( FRE - news - people ) in September, Congress resisted substantially reforming those two giants, which together guaranteed, repackaged and sold to investors around the world more than $1 trillion in junk mortgages. Significantly, the Obama proposals do not address what to do about Fannie and Freddie.
(Excerpt) Read more at forbes.com ...
A lot of people call Obama’s policies sincere, but sincerely wrong. Others claim it is a slow, deliberate attempt to remake the country’s system into European like socialism.
I tend to believe the later.
I’m happy to see more people speaking out against obamanomics. But who is going to be the true leader to step up and get people excited about opposing obi?
Everyone seems so timid. Cheney was going for a while, but he’s gone silent. We need to get things going before it is too late.
If no one else will say anything, we need a new Joe the Plumber. Or even the old Joe.
Is Sarah the right one? Maybe not now. They can always jump back to their “trash Palin” stories and muddy the waters.
To make a little joke, I’ll take the “third way”: I think that 0bama (and those around him) do what they do both as a consequence of sincere wrongheadedness and a malicious, tacit plan to deconstruct American capitalism.
It is the collective effect of purposeful and amoral manipulation that seeks to centralize economic, political, technological and societal forces in order to accrue maximum profit and political power to global banks, global corporations and the elitists who run them.
Slow??
A fourth might be that Opossum is co-opting the US treasury to be used as his own campaign fund.
I know.
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