Comments on: John McCain’s laissez-faire tendencies http://www.americanmadness.com/2008/03/26/john-mccains-laissez-faire-tendencies/ Intelligent Criticism in the Service of a Better Nation Thu, 08 Jan 2009 22:07:57 +0000 http://wordpress.org/?v=2.7 hourly 1 By: Paul Woodland http://www.americanmadness.com/2008/03/26/john-mccains-laissez-faire-tendencies/comment-page-1/#comment-126263 Paul Woodland Wed, 26 Mar 2008 18:03:00 +0000 http://americanmadness.com/2008/03/26/john-mccains-laissez-faire-tendencies/#comment-126263 True. True.

]]> By: Joel Friedlander http://www.americanmadness.com/2008/03/26/john-mccains-laissez-faire-tendencies/comment-page-1/#comment-126262 Joel Friedlander Wed, 26 Mar 2008 17:50:44 +0000 http://americanmadness.com/2008/03/26/john-mccains-laissez-faire-tendencies/#comment-126262 The 30 billion dollar guarantee was not just a loan, it is a guarantee that the American People must stand behind. Bear Sterns should have just been allowed to go into bankruptcy, which would have put everything on hold while the referee in bankruptcy evaluated their assets; some company or country would certainly have bought them, all without putting the American People on the line for the money. As it was the Fed rescued their own, something that is not likely to be allowed again without extreme regulation, and extremes are never good for the country. The 30 billion dollar guarantee was not just a loan, it is a guarantee that the American People must stand behind. Bear Sterns should have just been allowed to go into bankruptcy, which would have put everything on hold while the referee in bankruptcy evaluated their assets; some company or country would certainly have bought them, all without putting the American People on the line for the money. As it was the Fed rescued their own, something that is not likely to be allowed again without extreme regulation, and extremes are never good for the country.

]]> By: Paul Woodland http://www.americanmadness.com/2008/03/26/john-mccains-laissez-faire-tendencies/comment-page-1/#comment-126254 Paul Woodland Wed, 26 Mar 2008 16:53:19 +0000 http://americanmadness.com/2008/03/26/john-mccains-laissez-faire-tendencies/#comment-126254 I agree with McCain, “it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers.” I'm beginning to like McCain. He often takes the intelligent and rational position even when it is not popular. He's the only presidential candidate I've seen in my lifetime with that kind of integrity. Probably the last. The idea that ordinary people are incapable of making conscious reasonable decisions about the home they buy is simply classic flawed liberal logic. Of course people are capable of making these decisions for themselves. The problem is that a lot of people made stupid decisions and bought beyond their means. Both the banks and the buyers where complicit in an irrational charade that they are now paying for. In regards to Bear Stearns, if the company had folded in a fire sale it would still have been bought by JP Morgan Chase or some other entity without government intervention. The Fed simply gave JP Morgan an incredibly cheap loan at our expense and they took advantage of it. Who can blame them? Frankly, the implosion of Bear Stearns would just be another billion dollar bust in the massive American economy. Sure, it would have messed things up for a while, but this type of thing happens every year or so. It's part of our economy. I agree with McCain, “it is not the duty of government to bail out and reward those who act irresponsibly, whether they are big banks or small borrowers.”

I’m beginning to like McCain. He often takes the intelligent and rational position even when it is not popular. He’s the only presidential candidate I’ve seen in my lifetime with that kind of integrity. Probably the last.

The idea that ordinary people are incapable of making conscious reasonable decisions about the home they buy is simply classic flawed liberal logic. Of course people are capable of making these decisions for themselves. The problem is that a lot of people made stupid decisions and bought beyond their means. Both the banks and the buyers where complicit in an irrational charade that they are now paying for.

In regards to Bear Stearns, if the company had folded in a fire sale it would still have been bought by JP Morgan Chase or some other entity without government intervention. The Fed simply gave JP Morgan an incredibly cheap loan at our expense and they took advantage of it. Who can blame them?

Frankly, the implosion of Bear Stearns would just be another billion dollar bust in the massive American economy. Sure, it would have messed things up for a while, but this type of thing happens every year or so. It’s part of our economy.

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