Monday, November 3, 2008

Soft Landing

I've always enjoyed Michael Ramirez cartoons, this was scanned from my most recent issue of the National Review.
Generally I have a laissez-faire attitude toward government intrusion on things financial. In this case, different from the S&L crisis of the late 80's, there were advocates for governmental encouragement of expanding home ownership. Both Republicans and Democrats bragged on how they were expanding the privilege of home ownership to people who had not been able to afford them. In 2005 Republican attempts to get a reign on the loose credit were rejected and criticised by the dimocratic leadership. These are facts. They, our government, were eager to claim being helpful, but have no sense of responsibility for the beast they created.
Why should we trust a government is complicit in the failure to have enough ability to correct the situation?
I predict that the next financial failure will bring government support in a more automatic fashion, the underlying ethics are reshaped. Now government and business leadership have established a precedent that is sure to encourage more risky business practices.
Who suffers when it fails?
The tax payer.

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