The stock market crashed over 500 points today. Lehman brothers went bankrupt. Many others are scared that the market will crash even further. Some are worried the economy will crash. And, worse of all, many people are blaming the free market here.
The truth is there is no free market when it comes to financial institutions. These financial institutions are run by the government, and mainly by liberals in Washington. They decided a few years back was to make it easy for poor people to get into homes. So it is the government, not the free market, that is dragging the economy down.
The housing market was doing just fine until these businesses made it so that people could get into houses they could not afford. They could buy a house with no down payment. And this drove up the price of houses.
Then one day the housing market crashed because all of a sudden these people who couldn't afford homes in the first place were not paying their mortgages. So then you have a record number of mortgages because the market is correcting itself because of the inflated market that was tampered with.
And president Bush is blamed for it. He is blamed for the economic slump.
The real blame, however, is not Bush nor Bush policies. The blame is liberals who are in charge of the financial institutions. They are the ones who should get the blame for the economic woes we are facing today.
Yet the media will refuse to understand this. They will mis-educate the people, and the people will continue to believe them. In that sense, the media is just as guilty as liberals for this mess we are in.
Even John McCain is running around saying that we need more government regulations, we need reform (and we know that reform and government regulations are the same thing). However, he is right that we should not bail these failing companies out.
We have to remember that the free market will have its ups and down, but when the government imposes regulations, when the market is tampered with the way the financial institutions were, bad things happen.
That is exactly why we cannot afford to have liberals in the Washington. They do not understand how the economy works. They fail to see that every time Washington has tampered with the market it has failed.
A great example is the Great depression. Here the economy was sputtering, and politicians in Washington just had to do something to show that they cared, and the economy sputtered into the worst depression ever.
A good example of the opposite is Warren G. Harding, John F. Kennedy, Ronald Reagan, and George W. Bush who all inherited recessions and allowed the markets to correct themselves. They all ended their respective recessions and a boom ensued.
The housing bubble burst not because of Bush's policies, and the economy is not sputtering because of a failing free market, it is sputtering because of liberals who continue to think that they need to tinker with the free market to the benefit of the poor.
However, when the economy sputters as a result of these bad policies, more poor people are created as a result, which is just what the democrats want. Remember folks, the democrats can only prosper as a party when bad things happen in America. They have positioned themselves as the party of failure.
And when the economy fails, when the number of unemployed go up, and inflation goes up, people cry to liberals to bail them out. And things only get worse.
So then you have people saying that we have to bail these failing institutions out. Yet, if they get bailed out the people who made the bad policies, who allowed all these bad loans to happen, will never be punished. Instead, they will be rewarded.
And if we keep bailing companies out, they will not be responsible and try to run their businesses with sound policies. If I know the government is going to bail me out, why would I not take the risk. If I do well, I get richer.
If I do poorly, then the government will bail me out. If there is no risk for me, then I don't need to be responsible. I mean I would, but some people place money as their number one priority. Some people don't have the conscience of you and me.
Hey, it's easy to play with money when it's not yours and you know you won't be punished for doing something stupid.
So, the free market and capitalism are not to blame here. It is those who feel they have to tamper with the free market, with Capitalism. I said it before and I'll say it again, sometimes it is better to do nothing than to do something stupid.
But, some will never learn. And the wrong people will be blamed for their stupidity.