Free Markets: Extremely Costly!!

[DrYB/C]

To the victims, go the spoiled:

1. Taxpayers May Be Liable From Bear, Mortgage Rescue (Update3)

http://www.bloomberg.com/apps/news?p...H1s&refer=home

2. Federal Home Loan Banks May Buy $150 Billion of Bonds (Update3)

http://www.bloomberg.com/apps/news?p...efer=worldwide

3. US-backed banks to fill insurance breach

http://www.ft.com/cms/s/0/c5745c12-f...nclick_check=1


Maybe those who fund the campaigns of politicians will get a government agency to pick up the costs for this problem also (assuming such companies also exist in the US):

'Zombies' haunt private equity companies

http://us.ft.com/ftgateway/superpage...20081625385263

[Guest]

Re: Free Markets: Extremely Costly!!

To the victims, go the spoiled:

1. Taxpayers May Be Liable From Bear, Mortgage Rescue (Update3)

http://www.bloomberg.com/apps/news?p...H1s&refer=home

2. Federal Home Loan Banks May Buy $150 Billion of Bonds (Update3)

http://www.bloomberg.com/apps/news?p...efer=worldwide

3. US-backed banks to fill insurance breach

http://www.ft.com/cms/s/0/c5745c12-f...nclick_check=1


Maybe those who fund the campaigns of politicians will get a government agency to pick up the costs for this problem also (assuming such companies also exist in the US):

'Zombies' haunt private equity companies

http://us.ft.com/ftgateway/superpage...20081625385263

I seems to me that when the government is engaged in bailing out private firms that is NOT a free market. That also applies for monkeying with markets using monetary policy and other tactics.

There was a lack of regulation, but it's the decision to have some sort of Frankenstein hybrid of a free market economy that seems to be the problem here. Those who were foolish are going to be bailed out by those who were more prudent. Savers are punished, risk takers and over-consumers are rewarded. There are tax breaks for having children, buying homes, speculating on stocks...yet for delaying the risky act of child rearing, collecting dividends or interest...nope.... They even punish gold ownership through taxation.

The fact that government is complicit in the mess is the problem. Without their participation perhaps much of the worst would have been avoided, since participants would have to suffer the consequences full bore.

This is how a nanny state subtely poisons the spirit. "Go for it, the government will be there if it gets too bad!" it's the mixing of free markets with govn't interference that was the problem.