Friday, October 10, 2008
Is The Market Reacting to Creeping Socialism In America?
"Every step we take towards making the State our Caretaker of our lives, by that much we move toward making the State our Master." - Dwight Eisenhower
For those of you wondering why the market continues to crash (yes, I am using the "C" word) despite US government's feverish interventions with bailouts and loans and regulations, perhaps we should consider that it is government's intervention that caused the problem in the first place and very well may be causing the current sell off.
With talk of the government now "buying shares" of banks - and thereby owning them, and more taxpayer money being poured into private companies - and thereby owning them... it seems as if US and foreign investors may be pulling out of the US markets because we are losing ground to Socialism and fueling the fires of uncertainty. Now, Senator McCain is talking about government buying up and restructuring mortgages (something private companies should have been doing). The free market is being manipulated and assaulted. Investors sense this.
Barack Hussein Obama talks about universal healthcare while our government has already embarked upon universal housing through legislation like the Community Reinvestment Act and it's move to put low income people into home ownership. It backfired, even as it also made Wall Street Investment Houses and Bankers and Insurers very very wealthy; wealthy enough to enjoy lavish spending on it's agents and employees, and wealthy enough to make obscene corporate compensation. They have in fact become like the ruling aristocracy before events like the French Revolution. Unfortunately, folks like the heads of AIG and Lehman Brothers etc., also made very bad business decisions, squandered their companies' wealth, and put us all into jeopardy. Now the common man is outraged, and very justifiably so, because we are being required to fund this mess, and many of us have lost a substantial amount of our savings to boot.
We the people are also expecting government to "Save us". We the people must have also forgotten that investing in the stock market is, and always has been, a risky proposition. The market never had assurances for any of us, yet we were lured to place our retirements in the marketplace, just as people were welcomed to buy homes they could not afford with sub-prime loans. Many of us have been put into a place where we may now have no choice BUT to be dependent on government. We have to ask ourselves...was this by design? How did we fall for it?
Meanwhile, back in Washington, the Federal government has just given sweeping powers and authority to our Treasury Secretary with this bailout package. This was not a good move for us as a nation. Too much control in one place never is. Our Founders knew that.
More government intervention is not what is needed. It is what has caused this mess.
But as we speak the global powers that be are deciding the next move.
What will they be deciding?
What deals will be made outside of Congressional oversight?
Will it be a global currency that they will seek?
Will they embark upon a new framework which brings us closer to some sort of a "New World Order" whereby all countries join some sort of financial pact?
or is that just conspiracy theory hokum?
So far the conspiracy theorist "nutjobs" haven't been too terribly wrong, because they predicted this financial meltdown even down to it being just prior to American elections. Go figure.
What we must face here is that this financial crisis has been long in the making. We are also following very similar paths which led up to the 1929 crash. The Roaring Twenties were not that different from the over-extended credit consumerism of the Roaring Nineties (and "Aughts").
There are those that believe a crash is just what the Socialists in this country wanted in order to bring about more dependence on government. We expect that the government should bail us out of everything and give us everything. We are the generation of "Entitlement". That begets Socialism, and candidates like Barack Hussein Obama who preach Universal Healthcare, and government entitlements. He IS a Socialist, and if you support him YOU are supporting the expansion of Socialism in this country. The problem is that Senator McCain is no better at this point. Third party ideas are essentially being silenced in this election.
So where does this put us? It puts us in a position where investors are very concerned; and rightfully so. Americans are scared and angry; and rightfully so. We must also ask ourselves why is it that so-called "Conservative" Congressmen and others who proclaim to "protect our Constiutution", abandoned their principles to pass this bail-out legislation? How did they succumb to enticements, and coercion above representing their constituents? Now it is up to us to vote them out.
Meanwhile, President Bush makes another speech about how we all have to have confidence that the government is doing all it can to fix things ("Everything's Under Control Gromit") when really what we need is for the government to stop taking more and more control of everything.
The best thing we can do is wait for the market to bottom, let the market work as investors scoop up the bargains, and then it can continue along to build and put back the pieces. We should also require that companies make their CEO's pay for the companies' destruction, and that those frauds go to jail, along with certain Congressmen who initiated the legislation that brought the sub-prime mortgage mess to us in the first place.