Amen!!!.....

Government is not the solution....government is the problem. Truer words have never been spoken, of course, that didn't mean shit in those days and it wont these days. Nothing will stop the Empire from imploding over the next decade or so.

Are you making any plans to save your ass?




Mish's Global Economic Trend Analysis: Misguided Views of Libertarian Economics and the Alternative "Regulation" Model

One of the brightest regulars who comments on my blog has a totally distorted view of what Libertarian economics is all about. Unfortunately, I am quite confident that her view is mainstream.

Tin Hat writes ...

Here is the core premise behind libertarian economics:

The private business sector will put ethics, morality and public employee good above profits, shareholders, bonuses, golden parachutes and CEO compensation -- IF they were completely unfettered from any government imposed rules, laws, and regulations.

And IF the private sector entity failed in its fiduciary duty to the public, Main Street would rise up and kick them out.

That's Corporatism.

Regulation Model vs. the Libertarian Model

Sorry Tin Hat but that is not what Libertarian economics is all about or stands for at all.

First let's ponder the "Regulation" Model.

The "Regulation" model assumes Barney Frank (feel free to substitute your least favorite representative) will write responsible legislation and Congress will stop taking bribes for legislation they want.

Here are some examples of what the regulation models has wrought.

* The regulation model sponsored Fannie Mae and Freddie Mac.
* The regulation model gave huge tax breaks written by GE for GE
* The regulation model encourages flight of jobs overseas
* The regulation model supports corrupt public unions that have bankrupted cities and states
* The regulation model gave us the Fed and its bubble blowing policies
* The regulation model gave us thousands of affordable home programs all of which drove up the price of homes
* The regulation model provides hundreds of billions of dollars of student loans the effect of which is to make those graduating from school now, perpetual debt slaves.
* The regulation model gave us a healthcare bill we literally "had to pass to find out what was in it" according to Nancy Pelosi. Congress did not write that bill, it was entirely written by a consortium of special interest lobbyists.

I can provide thousands of more examples of what the "regulation" model has given us.

The very best financial regulation will ever do is prevent the last crisis.