The biggest challenge being faced by the world economic order is the perception that this crisis was caused by capitalism run amok. Today German Bundeskanzlerin Angela Merkel told the press (D) that what is needed is a state, ready and able to act, that has to assure what irresponsible bankers the world over have wreaked, or in the original German:
ein handlungsfähiger Staat das zu sichern sucht, was unverantwortliche Banker überall auf der Welt angerichtet habenIt is the biggest bait 'n switch since the left convinced the world that Hitlers Nazis and Mussolinis fascists were right-wing reactionary movements. Much as these ideologies, that wreaked so much havoc on the world, were a product of and founded on principles firmly embedded in statist socialism, so is the current crisis a result of the state (and by that I mean left-wing envy and misguided views on what is and what is not fair) interfering with the workings of a good functioning market, using it as a means to and end the market was never designed for.
While financial rocket scientists and the financial world at large bare some of the responsibility for the current crisis, we must never forget that it was state intervention in the market that was the prime mover in all of this. Diana West explains it succinctly in her piece on Townhall: Social engineering derailed our economy.
Not "enough" minorities owned homes, the social engineers decided, because not "enough" minorities were eligible for mortgages, the social engineers concluded. Therefore, in the bean-counting name of what "should" be, the social engineers effectively junked all bottom-line, non-racial markers of mortgage eligibility, from steady employment and clean credit to the all-important down payment, that banks have traditionally relied on to determine the difference between a good and a bad credit risk. This paved the way for increasingly unconventional "sub prime" loans for all (including rubber-check-writing deadbeats, speculators and novices-in-over-their-heads of all races). The social engineers claimed victory for what they called "affordable housing" -- which also paradoxically created a vast market of extremely unaffordable housing -- but it was just a house of cards!Roger Kimball, over on Pajamas sums up the bottom line:
The real estate bubble popped, the bad loans came crashing down, and the world markets came tumbling after.
Whether that 'burgeoning democratic anger' will ever materialize on these shores remains to be seen. As we speak the EU finance ministers are gathering in Luxembourg, planning the final EUnion take-over of the entire economy. EU Referendum is not optimistic about the outcome:
The bottom line?
- The mortgage market as an instrument of socialist economic redress, i.e., the redistribution of wealth come hell or high water.
- Irresponsible lending as the law of the land, the people and their wishes be damned.
The distant rumble you hear is the sound of burgeoning democratic anger preparing to expel the smirking, incompetent toadies who orchestrated and presided over this catastrophe. Will it achieve critical mass by November 4? It is too early to say. But the longer the rumble proceeds without action, the angrier the people will be.
Right! That should solve the crisis. We can all go home now and sleep safely in our beds … having sold the sheets and pillows and let the bailiffs in to repossess the house.Without a doubt, the outcome will be something along the lines of a forceful condemnation of 'cowboy capitalism' and a raft of measures that will do nothing to alleviate the crisis, but will give the EUnion the means to exert more control over important sectors of Europes economy. And thus we may find ourselves within a few months severely impoverished, both monetary and in terms of personal responsibility and freedom, by a monstrous system that, much like the boogie-man, feeds on the fear and misery of the population to strengthen itself. For in the eyes of the dedicated EUrocrat that is the only thing that matters: EUnion power.
[UPDATE001] From Davids Medienkritik:
"Fact is, European Banks are even more highly leveraged than US banks, and many still have political appointees on their Boards (yes folks, people more venal and incompetent than Wall Street bankers DO exist, but in the US they generally are kept under control by being confined to Congress. In Europe they get to play with banks and industry too). That's why Europe is in trouble."Ain't that the truth...
[UPDATE002] Finally McCain goes on the offensive with regard to the real causes of this crisis. Via Michelle, McCain on Obama:
Senator Obama was silent on the regulation of Fannie Mae and Freddie Mac, and his Democratic allies in Congress opposed every effort to rein them in. As recently as September of last year he said that subprime loans had been, quote, “a good idea.” Well, Senator Obama, that “good idea” has now plunged this country into the worst financial crisis since the Great Depression.The truth will out...