Thoughts, essays, and writings on Liberty. Written by the heirs of Patrick Henry.

“The income tax created more criminals than any other single act of government.”     Barry Goldwater

October 7, 2008

The Credit Crisis: A Bipartisan “Achievement”

by Stephen Littau

First, President Bush in 2002 pushes for increased home “ownership” regardless of creditworthiness.

Second, despite what Nancy Pelosi says, the Democrats most certainly did their part to help President Bush succeed in his “ownership society.” These Democrats who scream that this credit crisis is a result of lax regulations didn’t much appreciate the regulators when they warned that Freddie and Fannie were in trouble as early as 2004.

The recent rescue package bailout was also a bipartisan “achievement.” Despite these bipartisan efforts, as of this writing, the Dow Jones Industrial Average has dropped to 9720 (-235 so far today).

In tonight’s debate we can almost certainly count on John McCain and Barack Obama talking about “bipartisanship” and how each will “reach across the aisle” to get things done. As McCain and Obama reach across the aisle, we’ll be reaching for our ankles and say “Thank you Mistress Helga, may I please have another?”

That’s exactly what we are going to do. We are going to elect one of these two collectivists into the White House in just a few weeks and we are going to send Democrats and Republicans back to the House and the Senate and ask them to abuse us more.

Make no mistake: this credit crisis is a bipartisan government achievement. What it is NOT is a failure of the free market.

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4 Comments

  1. I agree that this financial disaster is an achievement that both sides of the aisle can cheer. But, I don’t think an absolutely free market would have prevented this from happening. Well thought out regulation serves the public good. What we’ve witnessed is the uneven application of pressure from well-funded interest groups to get their way – whether it’s investment bankers or lobbyists pushing social agendas. Check this bailout rant I wrote – you may enjoy it.

    Comment by SplendidMarbles — October 7, 2008 @ 3:31 pm
  2. [...] overcome the institutional incentives against rocking the boat. As Stephen pointed out earlier today, even when there are voices pointing out these problems, the regulators couldn’t seem to find [...]

    Pingback by The Liberty Papers »Blog Archive » A Failure Of Regulation — October 7, 2008 @ 4:57 pm
  3. But, I don’t think an absolutely free market would have prevented this from happening.

    This isn’t a question of regulation or not, this is a question of putting the power of the American taxpayer behind the two large market distortions known as Fannie Mae and Freddie Mac. Regulating them is putting a bandaid on a sucking chest wound. They should be broken up and their debts sold off to private banks.

    Comment by Quincy — October 8, 2008 @ 8:13 am
  4. There is a great site: http://www.opensecrets.org/

    They provide public lobbying figures. Look up Fannie and Freddie…it is staggering.

    Comment by freewheeler — October 9, 2008 @ 10:15 am

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