The headlines are simply too incredible to believe: MMMFs insured at $50 billion? Sickening. Why not just magically create $100 trillion and be done with the whole thing?
And with the ban on short selling, we have the amazing totalitarian act of criminalizing price pessimism.
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Jeffery,
You are correct. You see the General Public likes the word “Insure” vs. loan or bailout. The net effect is the same:Socialism.
Socialism? Not quite, but it’s coming …since 1913 and the Sixteenth Amendment. Check out von Mises’ 1950 address on how it’ll happen. Then consider what Uncle Sam has done and the effects down the road…like inflation in coming years/decades. Nobody knows yet what the final cost will be. Some estimates are around 6-7% GNP.
http://mises.org/midroad.asp
What Is “The Economy”?
Its very easy look at who is screaming the loudest that the government must do something. These are the people that have been benefiting from the distorted and over valued assets that are starting to unwind. They know that the gig is up. The profits taken over the past decade on Wall Street by hedge funds and the like are not real they are a bubble filled with nothing but hot air. They were not producing anything of real value or at least not of the value they were claiming. So, what do they do now?
http://digg.com/political_opinion/What_is_The_Economy
Perhaps “fascism” or “Mussolini-school of finance” would be a better description of what is going on now.
By the way, my previous blog posts insisting that money market mutual funds conform to the Austrian definition of money substitutes should be less controversial now. With the government offering a de facto guarantee of par value redemption, can there be any remaining doubt about the monetary status of MMMFs?
Where did the missing 2.5 Trillion dollars go-
In who’s pocket (or what shadow goverment) did it end up in.
Is this the “Greatest Transfer of Wealth” we have been waiting for?
Didn’t Mises once tell Rothbard that the way to tell if an economy was capitalist or socialist was the fact that it had a stock market?
Does America still have a stock market?
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