The bailout has crashed and burned. Good! Anyone remember Chrysler's bailout in 1979? Where is Chrysler today, almost 30 years later? That's right - they are still teetering on bankruptcy.
The lesson? Bailouts don't work. They set in amber the wrong people, wrong decisions and wrong business practices. They guarantee failure.
The stocks have dropped over 700 points on the news. We have become a society so entrenched in the safety net of socialism that we have let the disease corrupt the entire free market.
Merrill Lynch, Washington Mutual and all the rest weren't supposed to be run like the State Bank in Moscow circa 1975. Corruption, collusion, greed and incompetence is not rewarded in a free market.
And make no doubt about it banks morals are now the worst of all businesses. The endless parade of corruption reaches down to the small individual account holder who pays exorbitant overdraft fees and is made to feel unwelcome if they even walk in and use their bank instead of an automat.
If some banks fall and others rise - so be it. It couldn't have happened to a more corrupt industry - with the corruption stemming from the top down through the layers.
The best America is yet to come. Individualism will be back and the bad guys will be purged from the corruption plagued financial industry.
Stay calm and watch as the scale reaches equilibrium. This is only the end of the FDR era of socialistic interference in free markets.
It's the beginning of the TRUE free markets. Market values will be what they SHOULD be. House prices, car prices, gas prices, food prices all will come down to what their OBJECTIVE values are.
If a bailout IS passed - expect runaway inflation and the 7 dollar gallon of unleaded gas along with the 4 dollar cup of Diet soda at the local fast food place.
So celebrate - we dodged a bullet (and the decade long inflationary nightmare that would accompany it) thanks to the US House of Representatives.
Markets need balance. You can't prop a free market with socialism. That's the WAY corruption, laziness, incompetence can thrive in the first place!
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