Saturday, June 21, 2008

Subprime (BJ Lawson)

BJ Lawson has another excellent blog post on our crumbling economy and how government meddling is making the situation worse:

Back in August of last year, Barack Obama proposed a solution for the subprime crisis, perfectly following the "bubble script". Nine months later, we’re still on schedule — right up to high-profile government prosecutions of Bear Stearns hedge fund managers and promises of perpetuating but "regulating" a corrupt system in Senator Dodd’s Housing Bill:
The bill calls for a new, independent regulator for Fannie Mae, Freddie Mac and the Federal Home Loan Banks that would have the authority to establish capital standards and “prudential management standards,” as well as to “restrict asset growth and capital distributions for undercapitalized institutions,” among other powers, according to a summary of the bill.
As our markets and economy continue sagging under the weight of our unwinding debt (= credit) bubble, and a weak currency continues to send energy and food costs surging, it should be clear that our monetary, banking, and economic systems are sick.

Read the rest

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