Pointing fingers!!!!!!!!!!!!!

Just when John McCain (dead walking mean), was leading in all the polls between 5 and 10 percentage points, the finance system collapse. This is a huge break for Barak Obama and his campaign, but the “soap opera” just start, now we begin with the pointing fingers, in one side we have Obama trying to capitalize with the economy issues, in the other side, McCain trying to wash his hands out of the mess. The true and matter is that this is more of the same, just more rhetoric politics. Obama blame the Bush administration, McCain blames Wall Street.

What a surprise now they are blaming each other, but they are missing the big, pictures, if we have someone responsible of all this mess, is the Federal Reserve well known as the FED, particularly his former, director Alan Greenspan. Greenspan, that by the way is one of the persons that I most admire , but he made a huge mistake keeping interest rates too low for too long, creating the Real State Bubble, and stimulating banks to let money to everyone creating ridiculous lines of credit, but let just go back in time and refresh our minds.

Bill Clinton during his last administration, pushed for the deregulation of banks, which was approved by a Congress with Republican majority. These laws allow banks to go beyond their regular activities and invest in other areas, like investment, bonds, and other without any regulation by the market. It was the first time, that banks have literally free hands since 1930.

The true, is that this was the right decision, by congress, and Bill Clinton administration, a message of deregulation and free markets, less intervention of the government, but like the nature of humanity we always will have greed and people that will love to take advantage over others; Banks were giving loans to everyone, and making money left and right, from this erratic behavior came the collapse of Meryl Lynch, Stern, Countrywide, Lehman Brothers, and latter AIG. They just got into loans that were not realistic and affordable. Some argue, that this is the result of a no regulate it, market. I would have to strongly disagree. Economy and finance like everything in life has up and downs we have witness the best 25 years of prosperity in America thanks to free market and less regulations, it will be naïve to believe that we will not go through slowdowns, but if Mr. Bernanke (currently in charge of the FED), would it left the rates on 5% on September of 2007, and didn’t keep cutting until 2%, trying to save us from the inevitable, we would it pass this crisis a while ago, but it just prolong the pain, and put the prices of commodities through the roof, thanks to a week dollar.

Instead now the pain will be longer and tougher, and then we bail out the corrupt ones that star all this mess, some are talking about a 1 trillion dollar bail out, which is close to what we have spent so far in Irak. Under a true free market, you will let this banks collapse, and let the market fix it self.

Ownership society!

2 thoughts on “Pointing fingers!!!!!!!!!!!!!

  1. belinda says:

    when i read your blogs i can hear you say the words in my head. miss you. ok… back to your blog… i agree i think they should let the banks collapse and let the market fix itself. i dont see anyone jumping to help individuals that are suffering through all of this and these banks that pretty much had it all and took advantage of what they had, well let them suffer the consequences of their actions. if the government is going to help them then they should help everyone and we all know they are not going to do that.

  2. mrbochin23 says:

    That’s right Belinda: is a theory that is the one that I support laissez-faire which advocates minimal state intervention on the economy maintains that private initiative and production are best allowed a minimal of economic interventionism and taxation by the state beyond what is necessary to maintain individual liberty, peace, security, and property rights. This it’s my main issue with the Democratic Party, and was probably the biggest accomplish of Bill Clinton, which advocate for a smaller government. That’s why they always say that Clinton was the Democrat President the governed as a Republican, and that’s why half of the Democratic Party do not like the Clinton’s.

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