The market does work!
This well reasoned argument was sent by my friend Frank. May I share it with you?
Pat Buchanan has written a brilliant description of the circumstances surrounding our incipient economic collapse [Please see http://wnd.com/index.php?fa=PAGE.view&pageId=76313] However, he is wrong when he writes of the proposed bailout, "Nevertheless, it must be done, and done now, as collapse is imminent." Mr. Buchanan is wrong for the same reasons President Bush was wrong the other night when he told the nation that government intervention was needed "because financial markets are no longer working."
In fact, the financial markets ARE working. They are doing exactly what they are supposed to do. They are running away from worthless "investments" as fast as possible. Unless and until the market corrects the toxic legacy of decades of market manipulation by the Federal government and the Federal Reserve, economic order will not be restored. That correction is apt to be very painful.
The so-called bailout cannot work for the same reason that one cannot rescue a drowning man by pouring more water in the swimming pool. The U.S. is not in trouble because of insufficient debt. We are experiencing the inevitable end of the world's longest running Ponzi scheme.
The proposed bailout will not add one penny of real value to overpriced houses nor in any way diminish the gap between excessive mortgages and the true value of the houses being held as collateral. The bailout will not increase demand for the houses that account for residential real estate's excess inventory. What the bailout will do is rapidly accelerate the implosion of the dollar, precipitating decisions by foreign governments and sovereign wealth funds to stop purchasing our debt. When that occurs, the wheels will well and truly fall off.
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