- Never have voted for the Wall Street Bailout Plan
- Repeal it.
US Corporate State - Lew Rockwell's
review of David Stockman's The
Great Deformation: The Corruption of
Capitalism in America.
Reagan Budget Director David Stockman
exposes the fascism
of the 2008 Bush Bailouts.
Stockman also analyzes the same
corporate cronyism in FDR and the New
Deal, and even in the Reagan
Administration's claim that the Soviet
Union was in good financial shape, and
had it been American, would have
deserved a bailout, but since it was
"the Evil Empire" armed with
nuclear weapons, the U.S. needed to
build trillions of dollars of
conventional ships, planes, and tanks.
"Wall Street" should be called
Congress recently passed legislation which will take more than
$2,000 from every man, woman and child in America and give it to
Wall Street investors who made bad investments. The plan might be
called "The Paulson Plan," after Treasury Secretary
Henry Paulson, former CEO of a major Wall Street investment firm,
who will undoubtedly return to Wall Street in January, 2009, to
great fanfare and gratitude.
Should America be as grateful to Secretary Paulson as his Wall
Street friends are?
We are told we should be. We are not supposed to speak of the
plan as a "bailout" plan, but rather a
"rescue" plan, not for "Wall Street," but for
The bailout plan is fraudulent, unethical, unconstitutional and
will bring judgment on America from "the
Supreme Judge of the World."
The President has forgotten the limits placed on his authority
by the Constitution. He does not have the Constitutional
authority to spend a trillion
dollars bailing out irresponsible investors.
The Legislature has forgotten
that all spending bills are to originate in the House of
Representatives, not the Senate, and not the President's
it Constitutional? No: Cato Institute
The central problem in this "crisis" is a system of
"false weights and measures."
Mortgage loans do not originate in the deposits of savers. Americans
aren't saving any more, they're spending
everything they earn. Mortgage loans consist of money which is
created out of thin air. Banks create "counterfeit"
money to lend. This is called "fiat
money." The Bible calls it an "abomination."
If the government were not fraudulently debasing the currency,
creating new money to be loaned out at interest, the
debt-pyramid would never have been created in the first
place. There would have been no sale of mortgage-backed
securities. There would have been no "crisis." There
would have been no need for a "bailout." We should abolish
the Federal Reserve.
Although the government claims to be on the side of the poor,
earnestly desiring the poor to have "the
benefits of home ownership," in reality the
government is on the side of the banks. If the
government really wanted to be Mother Teresa, it could have
printed up the money and given it directly to the poor.
Instead, it gives the counterfeit money to banks, who lend
the money to the poor at
interest. Loaning money to the poor at
interest has always been considered morally repugnant in
Civilization. (More on "usury.")
A bank can suck a quarter of a million dollars in interest out
of your family's estate for a $100,000 mortgage.
Regulation Caused This Crisis
Not an "Unregulated" Free
of a Breakdown: Concerted government
policy helped trigger the financial
meltdown—and will almost certainly
extend it. - Reason Magazine
Mae Eases Credit To Aid Mortgage
Lending | New York Times,
September 30, 1999, describing
efforts by Democrats in the Clinton
Administration to create the current
Frank's fingerprints are all over
the financial fiasco | Jeff
Jacoby, The Boston Globe
Corporate State Fails |
"According to popular myth, the
current financial turmoil is the
result of Bush administration
deregulation. One problem with that
theory: there was no deregulation.
The last banking deregulation, the
Gramm-Leach-Bliley bill, was signed
by President Bill Clinton in 1999.
"Let’s hear no more about
Republicans’ loving limited
Corporate State Wins
Failure | To hear the media
pundits and presidential candidates
tell it, you’d think Adam Smith
has been president for the last
eight years and, with a Congress
full of free-market advocates, had
enacted an agenda of full-blown
But believe it or not, the problems
in the financial and housing
industries are not a market failure.
They are a government failure.
- Fannie Mae and Freddie
Mac: A Mercantilist Enterprise,
by Paul Cleveland, March 14, 2005
Mae: Another New Deal Monstrosity,
by Karen De Coster, July 2, 2007
Fannie and Freddie Made Me a Grumpy
Economist, by Christopher
Westley, July 21, 2008
Made the Fannie and Freddie Threat?
By Frank Shostak, March 5, 2004
Fannie and Freddie Too Big to Fail?
By Frank Shostak, September 17, 2008
Mae Distorts Markets, by Robert
Blumen, June 17, 2002
- Community Reinvestment
The Housing Bubble
Housing Bubble in Four Easy Steps,
by Mark Thornton, September 27, 2008
Real Cost of a Full Bailout, by
Don Rich, August 22, 2008
Subprime Mortgage "Crisis"
Will Fix Itself, by Steve
Berger, May 30, 2007
the Fed Cause the Housing Bubble?
By Robert Murphy, April 14, 2008
Mortgage Market Mess, by
Christopher Westley, May 17, 2007
Bubble: Myth or Reality? By
Frank Shostak, March 4, 2003
Who Predicted This?
Financial Apocalyptics are Back,
Robert Blumen, July 25, 2007
the Seeds of the Next Crisis,
Thorsten Polleit, April 25, 2006
Crisis: Precursor of Great Inflation,
by Thorsten Polleit, February 7,
Bailout, by Anton Mueller,
September 30, 2004
Unsustainable Boom, by Stefan
Karlsson, November 8, 2004
Predicted the Bubble? Who Predicted
the Crash? By Mark Thornton,
July 14, 2003
The "crisis" began when the federal government began
requiring lenders to make loans to people who were bad credit
risks, but were also members of politically-favored demographic
groups: "minorities," the "poor"; the
"disenfranchised," etc. Banks don't like making loans to
people who are statistically at risk of not paying the loan back.
So politicians, to gain the votes of the
"disadvantaged," put regulatory pressure on lenders to
lend to uncreditworthy borrowers.
This was an environment of regulation, not de-regulation. It
was more socialist than "laissez-faire." (see links in
box at right)
Government is supposed to operate only for the benefit of the
This is clearly an example of the government acting to benefit
special interests. First for "the poor," and now, with
the bailout, for Wall Street.
We are told that if this special interest group (Wall Street
bankers) are not bailed out, that "credit will seize up"
and nobody will be able to continue living in debt.
This would be a bad thing?
Government, operating as a benefactor of lenders, rather than
for the "general welfare," has been stacking the deck
for decades against Main Street and in favor of Wall Street. The
government encourages living in debt, to the benefit of the
bankers. Example: the government makes mortgage debt interest
(Wall Street profit) tax-deductible. Don't you wish the goods and
services you sell were likewise deductible? Would
that make your business more profitable?
Not all of Wall Street was involved in the mortgage pyramid.
Those firms that were should
go out of business, and those that weren't will be only too happy
to pick up the legitimate banking services that were provided by
the now-bankrupt firms.
Below are resources related to the bailout from the following
& Fig Tree" - the original
American Dream - work, profit, save, invest, enjoy - not
"easy to borrow," perpetual debt.
of Happiness, not right to
happiness - risk-takers must take personal
responsibility. "Free Enterprise" means profit
- Allowing irresponsible
businesses to fail is good.
Theory for the American Free Enterprise System
Message to Leaders
- The Doctrine of "Enumerated
Powers" - Government only has those powers
delegated to it by "We the People" in the
pages of the Constitution. Bailing out Wall Street was
not one of those powers.
- Government causes bankruptcy.
- Government causes inflation.
- Government caused "The
- Government bails out
special interests, does not promote the "general
- Why do people need to get
a loan? Government takes more than
half of everything you earn, leaving you with less
than you need. The average family now pays more in taxes
than it spends for housing, clothing, and food combined.
Biblically about the Banking Crisis
Much Red Ink in a TRILLION Dollar Bailout?
Rates Should be Higher
The Austrian Theory
of the Business Cycle
Idiocy of Wall Street, by Don Rich, September 24,
Fed is Culpable, by Hans F. Sennholz, November 11,
and Business Cycles, by Mark Thornton, August 23,
Outlook 2008: Darkening Clouds, Dominick Armentano,
January 2, 2008
Cycle Primer, Llewellyn H. Rockwell, Jr. February 8,
Depressions: Their Cause and Cure, by Murray
Updates from the Blog
It would probably be
depressing to compare the average university economics
curriculum (and the understanding the average university
economics student has of the current "bailout"
crisis) with the following worthwhile links:
Bailout Reader - A Collection of papers from the
A Crisis of Political Economy - Another
"reader" by Chris Sciabarra, a Visiting
Scholar at New York University - a complete course in
economics relating to the current "crisis," if
you follow the links.
Mae Eases Credit To Aid Mortgage Lending - New
York Times, September 30, 1999, describing efforts
by Democrats in the Clinton Administration to create the
Frank's fingerprints are all over the financial fiasco
- Jeff Jacoby, The Boston Globe
Mum on Barney Frank's Fannie Mae Love Connection
Barney Frank is a homosexual. One of his
"lovers" was a Fannie Mae executive. (Could
this be an argument for homosexual "marriage?"
After all, if they were officially, legally
"married," there might have been some
"conflict of interest" issues. But there are
undoubtedly a large number of similar conflicts with
heterosexuals in and out of Congress who are not
"married" to each other.)
Corporate State Fails
"According to popular myth, the current financial
turmoil is the result of Bush administration
deregulation. One problem with that theory: there was no
deregulation. The last banking deregulation, the Gramm-Leach-Bliley
bill, was signed by President Bill Clinton in 1999.
"Let’s hear no more about Republicans’ loving
To hear the media pundits and presidential candidates
tell it, you’d think Adam Smith has been president for
the last eight years and, with a Congress full of
free-market advocates, had enacted an agenda of
But believe it or not, the problems in the financial and
housing industries are not a market failure. They are a
of House Bailout Leader.
Behind the Financial Market Crisis? by Antony
Mueller, September 18, 2008
Financial House of Cards, by George Reisman, March
Central Bankers Become Central Planners? by Robert
Blumen, July 31, 2008
is a Policy that Cannot Last, by Thorsten Polleit,
March 14, 2008
Widening Safety Net, by Christopher Mayer, March 19,
Fed's New Tricks Are Creating Disaster, Frank
Shostak, March 18, 2008
Fed's War on the Middle Class, by Mark Thornton,
June 4, 2008.
- Austrian Economics
and Financial Markets conference at The Venetian
Hotel Resort Casino, Las Vegas, 02-18-2005
Theory of Money and Credit, by Ludwig von Mises
Great Depression, by Murray Rothbard
Mystery of Banking, by Murray Rothbard
and Production, by F.A. Hayek
of the Economic Crisis, by Ludwig von Mises
Theory of the Trade Cycle and Other Essays, by
Ludwig von Mises, et al.
the Dollar Crisis, by Percy Greaves
Case Against the Fed, by Murray Rothbard
Bank Credit, and Economic Cycles, by Jesus
Huerta de Soto
of American Currency, by William Graham Sumner
and the Business Cycle, by C.A. Phillips
Money Inflation in France, by Andrew Dickson
What To Do
Rescue Package Will Delay Recovery, September 29, 2008
Bail Them Out, by Llewellyn H. Rockwell, Jr.,
September 10, 2008
to Avoid Another Depression, by Mark Thornton,
September 10, 2008
Money Back, By Murray N. Rothbard, June 14, 2008
the Alchemists, by Ludwig von Mises, February 3, 2006
in American History, by H.A. Scott Trask, October 31,
and Freedom, by Joseph Salerno, February 2, 2002
Case for a Genuine Gold Dollar, by Murray Rothbard
with Frank Shostak, September 30, 2008
Ozarks Virtual Town Hall
here - October 18th, 2008 - "The Bailout is
not Fascism. Trust me."
here - October 4th, 2008 - Bailing out Foolish
here - September 27th, 2008 - The Bailout: Rescue
Plan or Enslavement Plan?
here - September 20th, 2008 - Free Enterprise or
here - July 19th, 2008 - Energy and Housing
here - May 3rd, 2008 - "Economic Slowdown"
here - April 26th, 2008 - Student Loans
here - March 29th, 2008 - Tax Rebates and the Housing
here - March 15th, 2008 - Stimulating the Economy,
here - January 19, 2008 - Economic Stimulus Package
here - December 8, 2007 - Help for Homeowners:- The
Alternative Minimum Tax and the Mortgage Mess
here - September 1, 2007 - The Subprime Mortgage Mess
here - July 7, 2007 - Government Spending and the
The links above were compiled during the week of October 5. Here
are some new updates:
next: Campaign Finance, Corruption and the
Oath of Office