Quick links on my way somewhere vaguely important


Some great articles, wish I had more time to comment on them
Today is another case of too much to do and not enough time.

But there are some quickies I want to hit.

First comes Paulson's Plan, And The Suckers Who Bought It.

Folks, this bailout money isn't about loosening credit for consumers or businesses, but consolidating wealth and power in fewer and fewer banking hands. That's great business for the banking elites, but lousy business for the US taxpayer. And it's all being orchestrated by one of their own, in the shape of Hank Paulson, ably assisted by Neel Kashkari, another ex-Goldman Sachs employee (with, according to the US Treasury, expertise in mergers and acquisitions -- what a surprise), and now responsible for administering the banking handouts.

Still, there's a Presidential election in the offing, and most people's attention is elsewhere; currently, it seems, on the cost of Sarah Palin's wardrobe. Meanwhile, the future earnings of US citizens are being siphoned off into supporting the empire building of the US banking oligarchy.

Accurate as far as it goes.

Then there is America asks for a king.

Joe the Plumber’s exposure of Obama’s “spread the wealth” philosophy exploded like a flash fire, not only because that philosophy is utterly anti-American, but because it is shortsighted, and immoral. It is short-sighted, because in an economy that is a bit battered and fragile, what we need are more businesses, more workers, and more wealth creation in the private sector, not more government programs and more people dependent upon them. It is short-sighted because it is a failed business model. And, as we saw with the collapse of major lending institutions a few weeks ago, a failed business model, made larger (or “spread around,” if you prefer) by government, is not just a failure, but a catastrophic failure. So it was with the irresponsible lending practices foisted on American banks by the government, and so it will be with the irresponsible spending and doomed reliance on government largesse that Obama and the Democrats are peddling as salvation.

And the inevitability of its failure is why Obama’s philosophies are not just foolhardy, but immoral. It is immoral to deceive well-meaning people about what you intend to do with their money. It is immoral to take by force from those who produce, give to others who do not, and call it “charity.” It is staggeringly immoral to create an ever-larger class of dependent, helpless people who will be doomed to starve when the unsustainable system you have created collapses. And most of all, it is profoundly immoral to set yourself up as a secular messiah of sorts, assuring people that you will take care of them, eliminate hardship, heal the planet, and hold enemies at bay by the sheer force of your own hypnotic rhetoric.

Another, The Age of Prosperity Is Over.

Financial panics, if left alone, rarely cause much damage to the real economy, output, employment or production. Asset values fall sharply and wipe out those who borrowed and lent too much, thereby redistributing wealth from the foolish to the prudent. This process is the topic of Nassim Nicholas Taleb's book "Fooled by Randomness."

When markets are free, asset values are supposed to go up and down, and competition opens up opportunities for profits and losses. Profits and stock appreciation are not rights, but rewards for insight mixed with a willingness to take risk. People who buy homes and the banks who give them mortgages are no different, in principle, than investors in the stock market, commodity speculators or shop owners. Good decisions should be rewarded and bad decisions should be punished. The market does just that with its profits and losses.

Meanwhile, the decentralization continues no matter what the FedGovs try to do. Wall Street workers leaving NYC for fresh start.

Corporate headhunters say Wall Street's malaise will lead to a permanent talent loss for New York. It could help small boutique firms become bigger players with employees they would never have been able to lure from the city long-regarded as the world's financial capital.

Watch those "small boutique firms." Chances are they are going to revolutionize the economy.

And finally, there's a great one at Serf City. We, the market.

We, the people, are the market. Not OPEC, the Dow, Goldman Sachs, or much less the Federal Reserve. The market is you and I with our dollars in our hands. It’s third graders spending their allowance on a favorite soda, let alone hassling their parents to purchase the latest X-Box game. Anyone buying anything they need or want is more significant in determining value than any broker on the NYSE trading floor.

There’s no “invisible hand” driving the markets. They’re not an abstract theory. They’re  the real and inevitable confluence of our creating, buying, selling or trading  of goods and/or services within various industries or demographics which we all comprise at different times. It’s difficult for many to comprehend the chaotic nature of economic liberty, ie free markets, creates the most opportunities and abundance from scarcity.

Free markets are infinitely more efficient than controlled economies such as Cuba’s, where rationing is deemed ethical, but it’s results are disastrous. For example,  asthma inhalers . Sure, they’re 5 cents. Because you’re only allowed one per month, which you still need to pay for. If you need more, as most asthmatics do, the only option is buying them on the black market for practically one month’s wage. Or having family send it from abroad.  Just a minor detail Michael Moore failed to mention in Sicko.

That's it for today. I should have more time tomorrow and I want to get in at least one opinion piece this week.

Oops, there's the NeoSignal, gotta go.

— NeoWayland

Posted: Mon - October 27, 2008 at 03:03 PM  Tag


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