1 a obsolete : the action of deceiving b (1) : the state or fact of being intellectually deceived or misled :misapprehension (2) : an instance of such deception
2 a (1) : a misleading image presented to the vision (2) : something that deceives or misleads intellectually b (1) : perception of something objectively existing in such a way as to cause misinterpretation of its actual nature (2) : hallucination 1 (3) : a pattern capable of reversible perspective
You Can’t Lose What You Never Had
Marc Faber and Bogle are correct that a collapse is coming. However, you can’t lose what you did not have. Capitalism did not fail, government regulation as it inevitably does, failed.
Fannie Mae, Freddie Mac, FDIC, Social Security, government bailouts of failed institutions have nothing to do with capitalism. Nor do tax breaks that favor housing over rent, nor does a government running HUG or FHA to support social goals.
The SEC took a perfectly fine credit rating system based on actual performance and turned it into sponsorship of Moody’s, Fitch, and the S&P. After SEC sponsorship, the “Big Three” got paid on the basis of the volume of business they did instead of how accurately they did business. (See Time To Break Up The Credit Rating Cartel) for details.
Virtually everything that failed can be traced back to government intervention into the free markets, especially the creation of the Fed itself.
Michael Moore, The Ultimate Irony
Blaming capitalism is all the rage. However it is not to blame, since it is not what was, or is, practiced. Michael Moore is all the rage too. Yet under a socialistic system that he espouses, Moore would likely be unable to make any polemic movies, since those are all financed by evil capitalists hoping to turn a profit on what he writes.
The ultimate irony is Michael Moore and those like him have people clamoring for more of what caused this crisis: government regulation. Meanwhile the very people Moore rails against are profiting on his misguided wisdom every step of the way.
Meanwhile I am asking Where The Hell Is The Outrage? hoping for less government interference in the free markets not more. With a certifiable socialist in the White House and a Republican party that long ago lost its ways, the odds are strong that any outrage that does get vented and acted upon, will go in the wrong direction.
That is why I agree with Marc Faber when he says “But what I don’t know is whether this final collapse, which is inevitable, will occur tomorrow, or in five or 10 years, and whether it will occur with the Dow at 100,000 and gold at $50,000 per ounce or even confiscated, or with the Dow at 3,000 and gold at $1,000.” But the end is inevitable, a historical imperative.
Ron Paul on Wall Street Fraud
For a more reasonable take on what is happening and what to do about it, please listen to Ron Paul, not Michael Moore.