All Posts Tagged With: "government intervention"

Instead of allowing capitalism to fix the problem, the feds made it worse. They gave more money to the very institutions and managers who had proved they couldn’t be trusted with it.
We don’t want to rehearse the whole sequence of events that got us to where we are. But it’s important to understand what happened.

This week, a certain joke became a painful reality, with a reshuffle at the European Central Bank.

All central banks are desperate to stop stress from building in the global banking system. Despite what they say, job No. 1 of every central bank is to do whatever it takes to prevent a disorderly collapse of banks caused by “bank runs.”

The growth of the last 30 years came from the government spending money we didn’t have. In Europe, the government spent it. In America, households spent it. In Britain, both spent it.

On Wednesday, perverted central bankers went well beyond showing the markets some leg to tempt investors into buying. Instead, Bernanke and his prurient friends at the central banks of Europe, Japan, Switzerland, England and Canada full on flashed investors.

Few people really like capitalism — even people who call themselves capitalists. The feds could probably round them all up and gun them down in an afternoon. Capitalism is too chancy…too unpredictable…and too uncontrollable. No wonder so few people are fond of it.

In 1986, 40% of Americans thought government regulated the economy too much. Now, 40% think it doesn’t regulate enough.