Saturday, September 26, 2009

 

Palin got it right about the financial crisis

I could not have written it better myself. I am not jumping on the Palin wagon yet, my last political crush did not work out so well, but if she is this honest about our economic failings and the rest of the GOP has nothing to say then who else could I support.

Lack of government wasn’t the problem. Government policies were the problem. The marketplace didn’t fail. It became exactly as common sense would expect it to. The government ordered the loosening of lending standards. The Federal Reserve kept interest rates low. The government forced lending institutions to give loans to people who, as I say, couldn’t afford them. Speculators spotted new investment vehicles, jumped on board and rating agencies underestimated risks…

How can we discuss reform without addressing the government policies at the root of the problems? The root of the collapse? And how can we think that setting up the Fed as the monitor of systemic risk in the financial sector will result in meaningful reform? The words “fox” and “hen house” come to mind. The Fed’s decisions helped create the bubble. Look at the root cause of most asset bubbles, and you’ll see the Fed somewhere in the background. [Emphasis added.]


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