Thursday, September 18, 2008

Where is the Conservative Outcry on the Mortgage Bailout?

We almost saw it Monday when John McCain came out condemning Bush’s $85 billion plan to bail out AIG, the American International Group. Then someone nudged him in the ribs and pointed out that AIG insured other banks and institutions that held peoples’ retirement packages and that their collapse would set off a domino effect. Then he changed his tune and said he was opposed to the notion but not the action.

This bailout, and the more extensive one proposed this morning by Bush really has to grate on the nerves of laissez-faire capitalist conservatives who believe in a free market, that the strong survive and the market self-corrects.

Taxpayer money, and I mean lots of it, all going toward a bailout of the mortgage industry.

And all because of the economic policies promulgated by Phil Gramm and his ilk. Policies that resulted deregulation of the lending industry. Policies that led to deregulation of the energy speculation market.

Policies that not only took the shotgun out of the farmer’s hand, but also put the wolf in charge of the henhouse.

Good old conservative laissez-faire free market policies.

But wait, there’s more.

Announced today is the SEC policy that forbids selling short the stocks of 799 financial institutions. Selling stocks short is seen by some to be a valid way to make money on the misfortunes of others because this is the way the free market prevents stocks from becoming over valued. But for the next couple of weeks anyway, the SEC is telling stock traders that they can’t make money that way.

The government stepping in telling traders that they can make money one way but not another.

Oh, that has got to rankle the free marketers.

So how are we going to fix the economy? The economy that was wrecked by 8 years of rule by a crew of kleptomaniacs? Well it’s simple really. All Bush has to do is ask what Democrats would do. Ask what liberal Democrats would do. And then do what they say.

So he did.

And the stock market responded by rising over 400 points in the first 3 hours of trading.

And the free market laissez-faire conservatives who would normally scream and shout about a socialist solution have to sit down and stay quiet while they count their money.


Anonymous said...

Actually quite a few "out" conservatives like Libers, constitutionalist and other dems and repubs are outraged about the meltdown. Even Paul spoke up on the pending problems during his campaign, while the mainstream ignored it.

Anonymous said...

Better google a bit. George Will just unleashed one this week.