CNN quoted Barack Obama about the economic crisis:
Obama said it’s unacceptable to expect the American people to “hand this administration or any administration a $700 billion check with no conditions and no oversight when a lack of oversight in Washington and on Wall Street is exactly what got us into this mess.”
He said struggling homeowners must be taken care of in any economic recovery plan — and that taxpayers should “not be spending one dime to reward the same Wall Street CEOs whose greed and irresponsibility got us into this mess.”
This sort of class warfare marks Obama as a demagogue. Why are Wall Street CEO’s “greedy and irresponsible”, but overreaching homeowners who signed themselves into a hole of debt for more home than they could afford — these people are not greedy? These people need to be “taken care of”?
Does no one see that the greed of Wall Street would have nothing to work with were it not for the greed of American consumers?
And the solution?
Read Bastiat, people. Anytime a loan is given to undeserving Tom, it means that it is being taken away from someone else who does deserve it. If Dick loans his money on Tom, he is taking a risk, in the hope of gaining interest. If Tom defaults, and Dick loses the money, it is wicked for Dick to try to use the law as an instrument of plunder to force Harry to pay him the money he has lost by making a foolish loan to the credit-unworthy Tom.
Am I missing something, or is that not precisely what Bernanke wants the government to do, on a massive scale? Taxpayers will pay the money that banks have lost via foolish loans.
Near as I can tell, fiat money is a Ponzi scheme.