The free market isn’t friendly, but it’s fair. What’s going on today with the proposed bailout is not a failure of the free market, but the failure of government to leave it alone.
In the free market, you win some and you lose some. Government has created a way for failed risks to produce winners and that throws the balance of the market way-off.
The free market, is by principal, balanced. The free market does not produce worthless paper or severe economic crisis; government does.
These companies that are proposed to receive bailout checks from the Fed need to go bankrupt. It is not the responsibility of the tax payer to pay for the risks of these Wall Street traders. Nor is it the responsibility of the tax payer to pay for the root cause of the problem; congress passing legislation that allows these banks to loan money to individuals that have no business receiving loans.
The federal government has built a dam on the economic river of America with this type of legislation and now, the waters have built and the dam is going to break; it’s only a matter of when. The market is going to go down and it’s not going to be pretty. While a bailout may “fix” the problem, it’s only a bandage unless the legislation passed in 1999 is repealed and the root cause of the problem is resolved; government meddling in the free market.
Today’s economic problem can be resolved easiliy and without putting the American economy seven hundred billion dollars more into debt. Cut the capital gains tax, begin cutting government programs and stop investing in the world and start investing in America. Time to make Iraq start footing the bill for the war and put additional responsibility on them to make their country work. Our government is bloated and busting at the seams with greedy politicians who need to downsize government; not make it bigger.