Come for the Politics, Stay for the Pathologies

Thursday, June 18, 2009

Too Big To Fail, Too Big To Bail

This administration does not like capitalism, free markets or competition. You need only examine their actions - and damages done -  to AIG, GM and Chrysler to figure that out. The proposed “fix” from the boy genius Tim Geithner (who, if we are to believe his implausible story of how he came to not pay his taxes, couldn’t even figure out how to use TurboTax) demonstrates more disdain for our economic system.

This Wall Street Journal article describes how this new government meddling will kill competition and in the process set up Fannie Mae and Freddie Mac style entities in every segment of the financial system.

His plan, if adopted, will fundamentally change the nature of our financial system and economy. The underlying concerns and assumptions are clear, and they are made clearer by considering other ways that his administration has dealt with the consequences of competition -- particularly the faux bankruptcies of General Motors and Chrysler and the impending change in antitrust policy. Although the president said in his speech that he supports free markets, these initiatives confirm that the administration fears the "creative destruction" that free markets produce, preferring stability over innovation, competition and change.


The Dems plan to push through this banking overhaul quickly, since it’s another crisis in need of a legislative agenda. And we all remember that a good crisis combined with a bias for action is a slam-dunk way to the dustbin of history.