Screwing to save virginity

In an interview George W. Bush made this statement:

"I've abandoned free-market principles to save the free-market system," Bush told CNN television, saying he had made the decision "to make sure the economy doesn't collapse."

I have a couple of observations.

• This is like Screwing to save Virginity.
  
• Government meddling CAUSED this 'crisis'.
  
• The 'fix' is more of the same meddling
  
• More government meddling only will make it worse in the long run

I know for some of you this is old ground, but for some of you it might not be. The Federal Government caused the sub-prime meltdown. They were (mis)-guided by a desire to get mortgages for people who could not (and should not) get them in the free market. In order to do this, they basically forced banks to loan money to people who could not afford to pay it back. These loans got sold, re-sold, and packaged into crummy investments. In the meantime, all of that available mortgage money caused housing prices to sky-rocket, which drove even more doomed loans.

When the bubble finally burst (and they all do) it was like dominoes. To start, the home owners started to default. These people had signed up for loans that had adjustable rates. Once the rates adjusted, they were doomed. Then they could not sell their homes because values had collapsed and they owed more than the house was currently worth. This caused the mortgage holders to be in trouble. Then the companies that insured the loans are toast. Then credit dries up. With tough credit, car sales tank. Now the car companies are underwater. And the ski-resorts, and ... and ... and.

Then bailout mania starts. The Fed basically says: 'Hey, we screwed it up THIS bad by turning our back on Free Market principles, hell we might as well go the rest of the way.'

This is retarded thinking. If the government backs off - the market will right the ship once again. Yes, it would be painful - but it gives the best LONG-TERM hope.

But, the wonks in DC don't have the balls for that. Instead, they will push us even further off the cliff. It may stop the bleeding - for now. But, like a doctor who only treats symptoms and ignores the underlying disease (cuz he doesn't watch House) - when disease finally pushes through - It is going to be UGLY.