Mindset of Stupidity

March 3, 2010 at 08:30 (Economy, News)

Congratulations to ABC. They finally rightfully point out that government intervention in the form of bailouts (or most any other type of intervention) causes problems. And that government intervention only leads to more problems and more government intervention, which starts a cycle. I’m glad they finally get it. So when do we start seeing calls for smaller government and start following what the Constitution plainly spells out? Apparently never. The mindset is not there. The authors of this obviously do not have a mindset that even allows the possibility of NOT bailing out an institution. Sad, really. We had the best thing since sliced bread, and we fully intend to squander it away into socialism. Pathetic.

Even as many Americans still struggle to recover from the country’s worst economic downturn since the Great Depression, another crisis – one that will be even worse than the current one – is looming, according to a new report from a group of leading economists, financiers, and former federal regulators.
new report predicting more financial troubles ahead for the US economy

In the report, the panel, that includes Rob Johnson of the United Nations Commission of Experts on Finance and bailout watchdog Elizabeth Warren, warns that financial regulatory reform measures proposed by the Obama administration and Congress must be beefed up to prevent banks from continuing to engage in high risk investing that precipitated the near collapse of the U.S. economy in 2008.

The report warns that the country is now immersed in a “doomsday cycle” wherein banks use borrowed money to take massive risks in an attempt to pay big dividends to shareholders and big bonuses to management – and when the risks go wrong, the banks receive taxpayer bailouts from the government.

“Risk-taking at banks,” the report cautions, “will soon be larger than ever.”

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