It’s been a pretty interesting week, in the economic arena this week in the US.
1. Lehman Brothers filed for bankruptcy
2. Bank of America buys Merrill Lynch
3. Freddie Mac and Fannie Mae are taken over by the government (Last Week)
And all the finger pointing begins.
I have an eerie feeling about all this…
When all this economic stuff happens all at once it’s very easy to sit on the side lines and start pointing fingers and looking for blame.
We’ll see congressional hearings, we’ll have the CEO’s of these companies being asked questions by senators who over regulated these companies to begin with.
When the our own government asks these companies to give loans to people with marginal credit, and they took the lower rate adjustable mortgage. What did think was going to happen when the interest rate went up and their mortgage payment doubled?
A child with a 3rd grade education could answer that one.
The major problem with all this is that the government is going to look like the savior in all of this and if that happens and the people of the US buy into this watch out.
We will become a socialist country within 10 years.
I want you to think of the complete and utter waste of our tax money that already goes on. They (US Government) can’t even properly manage what they have already.
The only answer to this is to continue as a Market based economy with as little government regulation as possible.
Eliminate the income tax and institute a federal sales tax. That way when commerce is happening their revenues continue to flow, when over regulation starts to happen and commerce slows down their revenues drop.
You can’t tell that the revenue from gasoline taxes this summer, didn’t drop substantially from the over regulation of the US oil companies and their in ability to drill where we know there is oil.
The only answer is a free market economy.
You may ask yourself, “Yeah, that sounds great but what about the programs that the government currently funds?”
Well if you make it a study, you’ll find that the prosperous people are very generous and give very willingly to charities they believe in.
It shouldn’t be the governments place to redistribute wealth.
What do you think? Leave your comments.
Here’s to Your LIfetoSuccess,
John Clark
