The Credit Crisis

From Real Clear Markets:

The government has rescued Bear Stearns and now Fannie Mae and Freddie Mac. This is not how things are supposed to work in America. The American dream is turning into a national nightmare.

And now we can add Lehman and Merrill to the list. The government is a major contributor to these problems, but their answer is more meddling in free markets.

"The path to recovery for our economy is well worn and proven. Corporate taxes
should be reduced dramatically or preferably eliminated. Individual taxes should
not be raised and preferably reduced. Regulation should be limited and effective. Banking reform should include a gradual increase in capital requirements. Trade should be expanded, not limited through tariffs and stealthy “fair” trade laments. Most importantly, the Federal Reserve should be reformed and given one mission – a stable currency. Not a rising dollar, not a falling dollar, but a stable dollar. The best way to accomplish that mission is by stabilizing the price of gold. A stable currency, once again linked to gold, will eliminate inflation and limit government spending.

The policies that advocate more government are borne of fear. The policies of the free market are borne from optimism. America is not a place that was built on fear. Our choice is clear."

Amen, brother.

Congress sticks its nose into CEO pay

Can someone tell me where in the constitution the government has the right to question a private employment contract? That's what Henry Waxman's Oversight and Government Operations Committee did yesterday. Oversight apparently means anything Herr Waxman wants to oversee. One wonders why he didn't question the compensation of Roger Clemens at last month's three ring circus. After all, the Rocket was paid $188,888 per inning in 2007 playing with the Yankees, delivering a mediocre 6-6 record and a 4.18 ERA. His pay is not only about a bajillion times more than the average beer vendor but the Yanks got knocked out of the playoffs in the first round. And that's with the highest player payroll in baseball. A lot of average Joes at the stadium and surrounding areas lost precious wages due to their incompetence.

But you say Cliff! The Yanks have to compete against other teams and you can't expect perfection. They're just paying market rates for the best talent available. There's a lot of variables in play here and I like to see you do better!

Exactly. I can't do better and would probably do a lot worse. That's why I can't and wouldn't haul the Steinbrenners in front of me to explain themselves. And since I'm not a shareholder, it's none of my damn business. But you see, according to Democrats the laws of supply and demand only apply to things people don't "need". Otherwise they'll replace the free and voluntary judgement of individuals with their own commandments from on high.

The credit and housing markets are going through a major correction. That's what markets do sometimes. There are more variables at work here than the Yankees could ever dream of . Nevertheless, Democrats think their scary intellect can sort it all out with show trials and more government meddling after the fact.

What's really happening here is a direct assault on capitalism and liberty by a statist fifth column.