Barack Obama gave a speech this morning in La Crosse, Wisconsin. It was more of the same old populist, socialist rhetoric we’ve come to expect from the Pope of Hope. And as expected, he blamed everything on Republicans and conservative philosophy.
This financial crisis is a direct result of the greed and irresponsibility that has dominated Washington and Wall Street for years.
But it is the greed of people such as his buddies Frank Raines, Chris Dodd and Jamie Gorelick.
It is the result of speculators who gamed the system, regulators who looked the other way, and lobbyists who bought their way into our government.
Again, those gaming the system were Franklin Raines, and company. The regulators who looked the other way were Barney Frank, Maxine Waters and Chris Dodd. The lobbyists who bought their way into government gave more money to Chris Dodd and Barack Obama than any other lawmakers.
It’s the result of an economic philosophy that says we should give more and more to those with the most and hope that prosperity trickles down to everyone else; a philosophy that views even the most common-sense regulations as unwise and unnecessary.
The capitalist philosophy has brought about more prosperity on this earth than any other. If the government stopped interfering in the capitalist system we wouldn’t be in this mess.
And this crisis is the final verdict on this failed philosophy — a philosophy that we cannot afford to continue.
He’s right, we were failed by a philosophy and we cannot allow that philosophy to continue. However, that philosophy is the philosophy in which government controls business. A philosophy that believes an oxy-moron such as “government sponsored enterprise” would be a successful enterprise is a philosphy that should be discarded.
- An undertaking, especially one of some scope, complication, and risk.
- A business organization.
- Industrious, systematic activity, especially when directed toward profit: Private enterprise is basic to capitalism.
At the heart of the current financial crisis sit Fannie Mae and Freddie Mac. Fannie and Freddie make loans that are backed by you and me. Where is the entrepreneur in tihs enterprise? Does not an entrepreneur assume the risk of his enterprise? In a GSE there is no risk to anybody but the taxpayer.
Apparently, the Democrats didn’t think Fannie was bad enough for American taxpayers or our economy, so Jimmy Carter signed the Community Reinvestment Act which required banks to make loans to people who aren’t credit worthy. That wasn’t bad enough so under Bill Clinton CRA’s were put on steroids.
Republicans and conservatives warned for years that this was a bad deal. They called for more regulation and the Democrats blocked them at every turn. Which brings us to where we are today.
As usual, Barack Obama is barking up the wrong philosophical tree.
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