President Obama outright demagogued his way to re-election and more government control over the economy by blaming the free market for the 2008 financial crisis. Now the administration is pushing banks to make more home loans to borrowers with weaker credit by using government programs to insure them against default, at a time when the federal government is already underwriting 90 percent of mortgages.
Which two have done more to improve your life - Thomas Edison and Steve Jobs, or Barack Obama and Nancy Pelosi? Some people, in their pursuit of profit, benefit their fellow humans by creating new or better goods and services, and then by employing others. We call such people entrepreneurs and productive workers. Others are parasites who suck the blood and energy away from the productive. Such people are most often found in government.
Evidence outlined in a Pentagon contractor report suggests that financial subversion carried out by unknown parties, such as terrorists or hostile nations, contributed to the 2008 economic crash by covertly using vulnerabilities in the U.S. financial system.
The Democratic-run investigative panel's 600 page report on what caused the financial crisis was promptly thrown onto a dusty shelf late last month where most congressional inquires are soon forgotten.
Want more evidence that many government officials could not care less about protecting our person, property and liberty - which the American Founding Fathers saw as the basic purpose of government? Reports released this past week provided a bumper crop of evidence.
Federal Reserve Chairman Ben Bernanke told a panel investigating the financial crisis that regulators must be ready to shutter the largest institutions if they threaten to bring down the financial system.
The former chief of failed investment giant Lehman Brothers told a Capitol Hill panel investigating the financial crisis that the Wall Street firm could have been rescued, but regulators refused to help -- even though they later bailed out other big banks.
Joseph Cassano, who led AIG from 2002 to 2008, is expected to tell a special panel Wednesday that he did his "very best" to estimate the losses accurately ahead of the financial crisis, according to prepared testimony. AIG received $182 billion in bailout money.
A former top executive of American International Group, Inc. has acknowledged that his division more than tripled the amount of risky investments it insured in the three years leading up to the 2008 financial meltdown.
As a general rule, diagnosis should precede treat -ment, but last week, we saw in both the legislative and executive branches examples of the treatment-before-diagnosis" mentality. In Congress, the first hearing of the congressionally created Financial Crisis Inquiry Commission was held under the chairmanship of Phil Angelides, former California treasurer and former chairman of the California Democratic Party. The commission was "mandated" by law to report back to Congress by December 2010 "with a series of conclusions about what occurred, and recommendations as to how to avoid future market breakdowns. (Disclosure: I provide professional advice to some financial institutions.)