The Heartbeat of the Heartland

Today the US Congress failed to pass a massive bailout plan, which, may be for the best. Last night, I came across a website, http://www.heartland.org/ which had a number of economists and experts suggesting that government intervention in our free markets will worsen our woes.

I would like to see Congress and Senate try to facilitate free market solutions to our problems, like buyouts, bankruptcies, mergers and acquisitions. Then, the government should get back into the anti-trust business and break up these big financial institutions into smaller companies. When a company is too big to fail it is just plain too big!

I also tend to think that the US Treasury needs to back up individual bank depositors, rather than trying to prop up institutions that have gotten too big and too unprofitable.

Apparently, constituents are calling Congress demanding they not bail out the banks. At least, for now they are listening.

I have a few questions:

Why has our economic policy favored mega corporations and slighted small to mid size businesses?

Why were Freddie Mac and Fannie Mae, quasi governmental companies, allowed to have lobbyists and make campaign contributions to politicians?

Why did Fed policies create such radical inflation of real estate values?

Why does Paulson want to put good money after bad, when clearly the more the government does, the less confidence people have in our economy.

Does America really want a government takeover of businesses on such a large scale?

Comments

  1. Hi Kimberly Just found your blog today.
    Answer to ? 1 thru 4 We have Government of the corporation by the corporation for the coporation. Sad to say.
    ? 5 Paulson has no good money its all debt based fiat worthless paper bank notes and the new debt used to pay off Wall Streets bad debt will just be passed down to us tax payers.
    ?6 We already have government controlled by the corporations hense the great struggle to maintain even the basic individual right to make a choise to consume real milk.
    Don

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