From: Robert LeChevalier

Sent: Saturday, September 20, 2008 12:57 PM
To:
'[email protected]'

Subject: Market turmoil

Watching a TV re-run last night, a character remarked, "you think we can't have another Dark Ages just because because we have computers, jet planes and cellular Phones? Think again."

Unfortunately, I agree.

Many, in and out of government, including a lot of politicians and many pundits, are now calling for more regulation of the banking industry and want to go after the CEOs en masse. Devils and fools, going after the
bogeymen — while government gets a free pass. Remember: Smoot-Hawley deepened the Great Depression.

Virtually everything the government is doing right now is the exact opposite of what is needed, including the rescue of Fannie and Freddie, the two central culprits that brought us to this crisis, via the Community Re-investment Act, which "encouraged" banks to make bad loans to unqualified borrowers. (See Link )

Now we have massive printing of money out of thin air to "stem" the crisis, like putting a welded steel plug on the exhaust vent of an out-of-control nuclear reactor.

As Ayn Rand used to say, "A is A" (see Atlas Shrugged). Down the road, we might be looking at a world-wide depression. I don't know if it will be 1, 5, or 20 years, but reality catches up with unreality, eventually. A is A.

*On principle* government is the beginning, middle and end of the problem, not the "greedy speculators", "greedy CEOs", "greedy oil companies" and "greedy bankers", as McBama are saying. The only real solution is, in the words of the 17th century manufacturer Legendre, when asked what the government could do to help industry, "laissez nous faire!" Or, in the vernacular of Rand's hero Galt, "Get the hell out of my way!"

Robert LeChevalier
Golden, CO

 

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