JohnAl

As Goes GM, So Goes the Country

Excellent article!

It remains to be seen how GM will fare after it's bailout bankruptcy. The crony capitalist manner in which this went down has also disturbed many potential buyers. I wonder how many will now swear off GM, and how that sentiment may damage their future.

Nothing About This Economy Is Surprising

“The doorstep to the temple of wisdom is a knowledge of our own ignorance.”
- Benjamin Franklin

Our problem is that we are not being led by wise men.

We're being led by men and women who think that they are smarter and more knowledgeable than our ancestors, and thus that history cannot teach us anything.

If there is even one among us today who possesses the insights of Thomas Jefferson, then he is staying well hidden. Yet even the average Joes, not to mention the arrogant politicians, dismiss Jefferson's warnings about central banking as quaint. "Things are different now", they rationalize.

But things are actually the same. People will always try to find ways to exert power over others and steal from them. When you get right down to it, while we walk around in well tailored clothing and put men on the moon, we're just a bunch of well dressed uberchimps with the ability to build things.

History tells us that human liberty to the degree experienced in this country only comes around rarely. I count myself fortunate to have experienced it, even if only at the tail end of the run.

I'm afraid it's gone though, and won't be seen again in this country for a very long time.

Are We at the Beginning of the Next Bull Market? Probably Not

"Let put the record straight. The Great Depression started on October 29, 1929 (Republican Hoover in power). February, 1930 Treasury Sec. Andrew Mellon announces that the Fed will standby as the market works itself out. This philosophy continued through 1931. By 1932 over 10,000 banks failed and 80% of the markets value is lost. Hoover did little to late and FDR won the election and took over in 1933. By 1934 the markets began to recover. "

toobad41, you really need to reread your history. Looking at this as a Democrat vs Republican issue is missing reality entirely. Hoover wasn't the free marketer that he's made out to be by history teachers in the gubmint schools, he was a classic economic interventionist. In an attempt to spend the country out of the depression Hoover increased federal spending and the deficit so dramatically that FDR railed against it in the 1932 campaign. He also pressured business to prop up wage rates and it was he, not FDR, who started the depression era public works programs.

The Hoover/FDR to Bush/Obama parallels are astounding. Just as Bush was no free marketer, neither was Hoover. And just as FDR turned out to be Hoover on steroids, so it appears that Obama is Bush on steroids.

The Hoover/FDR interventionism stifled the recovery and kept the country in depression for a decade and a half. Let's just hope America comes to it's senses and we don't suffer the same fate in today's Bush/Obama depression.

Orwellian Finance: Is 1984 Happening in 2009?

"Economic Recovery Program – This is Barrack Obama’s first contribution to Newspeak."

erp... kinda sounds like the sound my dog makes when she's puking.

Orwellian Finance: Is 1984 Happening in 2009?

Great piece of writing Mr. Quinn, and some excellent commentary as well.

I'm the world's biggest pessimist, but I'm starting to think that there IS hope for this country. There is a growing groundswell of opinion, at least as expressed here at SA, that we are off the tracks.

Here Comes the Foreclosure Cavalry

Oops, I should have mentioned that I did find the article to be informative. Thx

Here Comes the Foreclosure Cavalry

"The administration's blind eye to the impending crisis is emblematic of its governing philosophy, which trusted market forces and discounted the value of government intervention in the economy. Its belief ironically has ushered in the most massive government intervention since the 1930s. (yes, talk about IRONY!)"

i'm getting tired of correcting this oft repeated falsehood but hey, somebody's gotta do it, so here goes.

The mess was hardly a failure of capitalism. Anything but.

First, everybody's playing with fiat, government created currency, in a play world where the interest rate has been manipulated via fractional reserve banking to be far lower than the reality that lenders would otherwise require in a free market financial system.

Second, the lending came from GSEs that wouldn't exist in a free market, and the money found it's way into housing thanks to various government incentives.

Yes, wall street's creation of the nasty derivatives could be considered capitalist, but in the bizarro world that discounts risk due to the false sense of security caused by over regulation and the accompanying belief that these investments are safe because the government's looking out for us, people actually bought this crap without worrying about the underlying investments. And other people, faked out by the same false sense of security insured the crap.

And so now almost everybody believes that the fix is even more regulation and more intervention into the market until... until what? Until the whole thing implodes because anybody with any sense has moved all of their wealth into gold or tried looking for investment opportunities in less manipulated markets elsewhere.

Four Myths About the Free Market and Its 'Demise'

"Would the free market do it better?"

For crissake... we wouldn't even HAVE this mess if we had a free market.