Walking through the crisis
Reason.com has one of the best blow-by-blow accounts of how the financial sector crisis came to be. However, it begins too early. The article starts its mapping of the meltdown with mortgage-backed securities and the risky lending that preceded them. It’s important to consider what led to that lending: Clinton administration Community Reinvestment Act policies.
The problems being faced by Wall Street today are the final verdict on Bill Clinton’s economic policies. Following socialist, market meddling philosophy egged on by racist agitation special interest groups is now coming back to haunt us. More government meddling will only make things worse.
While the pain is real and serious, we are still not facing a total economic crisis. Don’t believe the fear-mongering of politicians. This problem can be solved by the market, along with government action that is largely not being considered (de-regulation of accounting rules and reserve requirements; capital gains tax suspension). If the bailout bill passes, it will be another example of politics and fear trumping rationality.
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