Man-Made Economic Woes

I have commented in the past on our economic financial meltdown and economic woes, but I think it worthwhile repeating.

Far too many folks are still getting misled by the slanted media and by politicians who have their axes to grind.

One: Up and down economic cycles are normal, but excesses may have other causes.

Two: The current financial meltdown started as a direct result of a concerted government policy of making home mortgages available to folks who could not afford to have those mortgages.

Three: Because of government pressure, and threats of law suits from “do-gooders,” in addition to the opportunity for profit, banks collateralized the mortgage date obligations (CDOs) that facilitated mortgage sales the world over.

Four: Government-licensed rating agencies gave these CDOs the AAA ratings that assured the global sale of the securities.

Five: Thus, a bubble grew and grew until, like all bubbles, it burst.

Six: To add to the bad psychology that accompanies any bust, the government came in with a series of disastrous man-made steps.

Among just a few disasters: The decision to determine bank value on a daily fictitious basis. Catastrophic, unnecessary bailouts of banks, when ordinary guarantees would do. Buy-ins of auto companies to form a fascistic corporate state (a la Benito Mussolini). The government takeover of AIG when an ordinary bankruptcy would do less damage.

In short: The government has seen to it that a slight economic downturn has become a Great Recession. With an unconscionable deficit to go with it.