The natural progress of things is for government to gain ground and for liberty to yield.

- Thomas Jefferson

Republicans Again Eschew Free Market

It is Clear that Politicians only believe in government. The current (R)epublican administration is working on a sub-prime bailout, which we indicated would only exacerbate the problem. When the bubble was over-inflating, the free-market was working. When the bubble bursts and the market corrects, the free-market is working. If you believe in the free-market, you take the bad with the good. Unfortunately, politicians believe in nothing more than power.

Here are some samplings regarding the sub-prime mortgage bailout:

Joining the Fed's effort to meddle with the free market is Treasury Secretary Hank Paulson and his plan to rescue the housing market. The essence of his plan is to convince the owners of sub- prime adjustable mortgage debt to freeze the interest rate resets for a period of about five years, a proposal which is supposedly only to be available to those who will become indigent once the higher rates become effective. Ostensibly, this will ameliorate the anticipated surge in mortgage foreclosures and prevent a further decline in home prices. [Read]

THE chameleons of the free market never cease to amaze. When things are good they worship at the altar of deregulation. When the market turns bad, they squeal like stuck pigs and are first in line for a government leg-up.

So it is with the sub-prime loans rescue plan now being crafted by US Treasury Secretary Hank Paulson in collusion with vested interests like Countrywide Financial, Wells Fargo, Washington Mutual and Citigroup.

Top Bush administration officials, including Treasury Secretary Henry Paulson, and members of the mortgage industry will brief reporters Thursday afternoon on the Bush administration's efforts to aid homeowners stay in their homes amid the ongoing housing downturn and credit crisis. [Read]

posted at 13:57:08 on 12/05/07 by clearpolitics - Category: Economics - [Permalink]

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