Free Republic

Even if the Federal Reserve gets around to strengthening the dollar--which would do wonders to get the economy really moving again--we still face a mammoth and growing problem: the government's increasing domination and distortion of the capital markets. It's not only the need to finance Uncle Sam's deficits that crowds out other credit seekers in the marketplace. It's also the proliferation of government entities (think Fannie Mae and Freddie Mac), government loan guarantees, tax credits and the government's growing sway over the banking sector. Even if Washington's red ink were back to the levels of a couple of years ago,...

The Curve in the Road Necessary but Not Sufficient Why the Government Had to Step In All the King's Horses How Can I Be 59? The "Bailout Plan" was passed. Will it work? The answer depends on what your definition of "work" is. If by work you mean no more government intervention and no further costly programs and a functioning market, then the answer is no. But there are things it will do. This week I try to help you see what might lie ahead around the Curve in the Road. We look at how the rescue plan will function,...

Check credit market to see if bailout works Kathleen Pender Sunday, October 5, 2008 Now that Congress has passed the bailout bill, how and when will we know if it is working? Before we can answer those questions, first we have to answer this: What problem was this bailout trying to solve? Although lawmakers tried to rebrand it an "economic rescue bill," experts say its real purpose is to create a more active and transparent market for mortgage-related securities and thereby help restore confidence in the financial system. It won't restore the balance in your 401(k) plan in short order...