Did the “excesses” of capitalism cause the current financial crisis? First, we really don’t have capitalism in the United States, at least not any reasonable semblance of laissez faire capitalism, as explained in my post The Myth that Laissez Faire Is Responsible for Our Present Crisis, based on the work of Professor George Reisman.
The Wall Street Journal article How Government Created the Financial Crisis: Research shows the failure to rescue Lehman did not trigger the fall panic explains more in these excerpts:
Many are calling for a 9/11-type commission to investigate the financial crisis. Any such investigation should not rule out government itself as a major culprit. My research shows that government actions and interventions — not any inherent failure or instability of the private economy — caused, prolonged and dramatically worsened the crisis. … The realization by the public that the government’s intervention plan had not been fully thought through, and the official story that the economy was tanking, likely led to the panic seen in the next few weeks. And this was likely amplified by the ad hoc decisions to support some financial institutions and not others and unclear, seemingly fear-based explanations of programs to address the crisis. What was the rationale for intervening with Bear Stearns, then not with Lehman, and then again with AIG? What would guide the operations of the TARP? … Massive responses with little explanation will probably make things worse. That is the lesson from this crisis so far.
Both parties in Washington have contributed to this financial situation. The demokrats have passed laws and approved regulations that strangle our economy, and the Republicans have permitted it to happen.
If memory serves me, in 2004-2005 Sen. Schumer was on TV with either Sen. Dodd or Rep. Barney Frank bragging that they had just passed new banking regulations to allow all RESIDENTS to enjoy the “Right of Home Ownership”. ?!?!?!
In the next breath Schumer PROMISED an audit for any bank that failed to go along with these new regulations and guidlines. Congress caused this and is dodging any blame for what they’ve done. I am certain they do not intend to fix it. I hate to sound like a conspiracy nut, but these people are not stupid. The left has stated they would like to bring our economy down to the level of the stagnant EU to make the world a more level playing field, and they are doing just that.
But first we need to return the God of Jacob to His rightful place in our country. If we did not bring back school prayer and honor the 10 Commandments etc., we stand no chance of success. Only then we will be able to undo and fix what these poeple have intentionally done.
It indeed does take quite a lot to find great information such as this. Thanks a lot.