Free Enterprise My Ass
The true free enterprise economic system has been moribund in the US for decades. When so much of the economy is tied up in the anti-competitive government-managed military-industrial-financial complex, then "free enterprise" becomes no longer a part of reality, simply a useful rhetorical tool. This has been going on since before World War Two. But we may soon have a real date to hang on to as the "Death of Free Enterprise Day".
Within the next week or so, we expect the Bush Administration to enact regulations that will fix (i.e., mandate) low interest rates for those house buyers who are classed as sub-prime even when their contractual obligations call for those interest rates to rise steeply in the next months. In other words, house buyers in the US are being told that it doesn't matter that they purchased a house they could not afford; someone else will come along and help them pay the bill. No worries. Of course, for those tax-payers (and their grandchildren) who will be told to pay these bills there might be some worries.
The Democrats are pushing much the same interest-rate freeze proposals. Hillary Clinton, for example, came out with hers this morning.
Both the Democrats and Bush will say they are doing this to help the poor Americans who dug this hole for themselves, to help save them from inevitable foreclosure. They will say it is the duty of hardworking American taxpayers to pay up to help this unfortunate group save their homes. Such bullshit this all is. Both plans in reality seek to save the grasping financial markets from meltdown.
Both the Democrats and the administration know that the real losers in any genuine sub-prime meltdown are not the new homeowners (who will simply return to their lives in low-rent apartments) but the finance companies who will never be able to sell the repossessed houses at the prices the companies paid for them. It is the finance companies the American taxpayers will be bailing out -- again!
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Posted by: Troy | May 31, 2008 5:06:05 PM