Martin Masse, in an excellent piece in the National Post, notes that most of the people who are supposed to favor capitalism were actually pushing for the bailout, while the left-Keynesians and Marxists whose policies brought us to this point and favor stabilization and state capital actually opposed the bill. Only the Austrians consistently get it right. See his excellent article.
Source link: http://blog.mises.org/8645/the-disgrace-of-some-capitalists/
The Disgrace of (some) Capitalists
Previous post: Bring Down That Chandelier!
Next post: The Crisis and the Calculation Debate: “the book is still out”
{ 9 comments }
In writing letters to my Senators and Representatives, I had the thought that it would be great if there was some way our elected and appointed officials could take on a leadership role by personally spending their own money to buy up distressed assets. If this really is good for the nation, then every bit will help and nothing should galvanize confidence in the electorate like seeing members of Congress invest their own money into the bailout plan we are being told is for our own good.
Does anybody know of a site or group that is already doing something like this? Would it be possible to start one up if it didn’t exist? I would love for there to be a way for officials who support the bailout to show their confidence in it by putting their own money on the line. If what we’ve been told is true, then they risk losing very little money and might even end up making a profit. What better way to show the voters they care and instill confidence in their leadership? Thoughts?
Great article. It is even more impressive it came from a Qubec based writer who is from the Austrian school. Quebec has long been the socialist/left wing oasis of Canada and I am pleased to read afine article that talks to the truth about the Keynesian/Monetarist nonsense. This “bailout” plan was doomed from the get go and deserved to fail. Unfortunately, money will not solve the crisis. The crisis will end when it needs to thanks to home prices that naturally decline to a level the average buyer can afford and when consumers and businesses are able and willing to take on new debt. Of course, the interventions planned/implemented so far have been miserable failures and will continue to be thanks to the psychology of debtors. As with all credit based, fiat money ponzi schemes, the day of reckoning awaits. The new amount of debt being created is dwarfed by the amount of debt in default or about to go into default. I have been visiting your site for about a month now and have been following markets since 12. For the last 4-5 years, I have focussed on looking at past financial crises and the economic theories in force at the time. All i can say is that while no system is perfect, the only honest system is the Austrian school. Methinks the day of hard money will come in the next decade, and that the Keneysian and Mercantilist practioners will go into a long Winter hibernation. Keep up the good work !
JO
Go Martin!
Don’t be so sure this bailout has failed. I fully expect it to come back bigger and with more goodies. My guess is final tab: 1.2 to 1.5 trillion.
The bailout is on its way back with new and improved scare tactics. Radio news just mentioned a fresh wave of layoffs because the bailout didn’t go through. Right symptoms, wrong cause.
You know, my coffee this morning is a bit thin and bitter, surely because the bailout failed. My muffins didn’t rise, the touchpad on my laptop is being fussy, my shoelace broke, there is a stain on my kitchen floor, I can’t find the cord to my digital camera, my favorite CD is sticking, and there is a dead spot in my lawn–all because the bailout failed.
You can add global warming too. Or, maybe it’s the other way around. Regardless, government must intervene … not.
I was surprised/pleased to see this among the top headlines of the Drudge Report this morning.
This is because the majority of those that voted the bailout down are not against the bailout per say, just that the bailout is not theirs.
Comments on this entry are closed.