Mr. Cynical

Credit Markets: Tanking Again?

It's always nice when we wax poetic on the nature of free markets and the evils of government intervention. How short your memory is. If the government pulled out now and left the market to its devices, the "free market," if there ever were such a thing, would very likely seize up again. Many of the same conditions which led to the freeze-up are still in place. Over-leveraging, no more securitization market, increasing stress on homeowners, etc.

What you are railing against is a deliberate attempt by the Obama administration to give the banks time to earn their way out of a big mess and avoid having to interrupt more in the marketplace. So despite the fact that what they are attempting to do is stay out of it, what you are saying is you want a government solution, you want it now and then get the hell out the way tomorrow.

Plus, the only thing that could be done now would be nationalization on a massive scale and massive debt reorg for consumers. Certainly if they did that then the criticism would really fly.

Impending Market Rebound Tied to Financial Sector

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