We supposedly live in a free-market, Capitalist economy. That means that through competition and risk, the best companies and products win. Consumers will only buy a defective or poorly-made product once (maybe twice). After that, they steer away from that product or company and tell their friends about their negative experience. Those friends tell other friends and because they somewhat trust each other, few people continue to buy the defective or bad product. And the good products and services win.
That's a very simple version of what is meant by the "free-hand of the market" that we hear so many Capitalist ideologues pontificating about these days. Especially in light of the recent buyout of Bear Stearns by J.P. Morgan, it's very relevant today to point out that it's all crap.
Here's a very brief and simple run-down of what happened: Bear Stearns, an investment bank, made some risky investments. They turned out to be very bad and very risky investments. Because of said bad, risky investments, Bear Stearns was about to go under. (Kind of like what happens if you have a mortgage and car payment and blow all of your money at the blackjack table in Atlantic City).
So, what did the Federal Reserve do? They gave J.P. Morgan a $30 billion line of credit (interest loan), so they could buy out Bear Stearns. How is this the free-hand of the market working?
Who's gonna bail me out if I blow all of my money at the blackjack table in A.C.? Moreover, who's gonna help bailout the millions of Americans who have lost their home due to foreclosures from rigged mortgage interest rates? Oh, that'd be welfare....consumers must learn from their mistakes....read the fine print....etc. But if you're a big-business economic leader, it's somehow ok?
If we live in a Capitalist economy like Bush and most government officials say we do, then why doesn't the Fed act like it? Why is it ok to bend the rules - but only in their favor?
But wait...the Bush administration has proposed sweeping new changes to our financial infrastructure here. Too good to be true however, it's just bait and switch. Paul Krugman breaks it down here, with a nice insider view of what's really going on. For more on the housing crisis by Krugman, check out this video.
I kind of saw this coming. Cell phones and radiation and our brains are not a very good mixture. The more time elapses, the more studies are starting to show that these convenient devices are quite harmful to our well-being.
Why are none of the presidential candidates talking about Iraq anymore? My step-brother is over there. I care about what's going on - as I'm sure many in and out of the military and many with no military connections at all, still do. So, why are we receiving less and less coverage?
President Bush gets booed by many in the crowed while throwing out the first pitch. Warms my heart.
Free speech, private property, and T-shirts: Read.
Why don't we ask what's best for the Iraqi's? Watch and listen, here.
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