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(Via Hot Air.) It seems that a lot of people think that markets should never go down, that home prices should be exempt from the laws of supply and demand, that nobody should ever lose money. However, if you really believe in capitalism, you understand that the long-term prospect is for economic growth and this temporary downward cycle is no cause for panic, whereas expanding the power of government to intervene in the private economy is truly frightening. I would rather lose money than to lose liberty.
So, no, we are not "all socialists now," and it infuriates me to hear people claim that we must "do something" -- anything! -- to save their 401Ks and prevent a few months of recession. Let the market correct, let people lose whatever they lose in the process, and then rebuild on a solid foundation. It's not 1929, and we'll muddle through, if only people would stop freaking out about it.
Exactly. That's where the credit crunch comes from, and the markets falling.
ReplyDeleteIf the few institutions that bungled up, were allowed to fail and the bailout money was used to protect their creditors, investors would continue to have a measure who is good and who is not in free market. There would have been no credit crunch. Responsible people would have taken a pay cut, but the demand for what the institutions do would remain. People would get rehired and find new jobs that are suitable for them.
This way, nobody can predict who the government will bail out. The common sense of the market is gone. Of course no one wants to lend money to anybody else. Judging business on merrits has been interrupted. That's what socialism is, and both of our candidates see it as the future for us!