About Patrick

Sometime political guy.

  • some reason….lemme guess….Maher used him like a useful idiot to bash Bush and ignore the damage the Obamessiah is doing to the country and the Constitution.

  • Festus Garvey

    Sure Paulites can say we don’t have a pure free market system…but the one totally unregualted market–credit default swaps–is what did the real damage.  It also seeped into a part of the market that was supposed to be (somewhat regulated) mortgages and created a system where there was never a lender who cared if the laon was good or not.  This unregualted market created a system where mortgages given and then immediately sold, repackaged and then bets where made on if they would go south or not.  No one actually held the mortgage note, so who cared where the person getting the loan had a job or could afford the mortage (or lets invent a “loan” in which the initial payments don’t even pay all the interest…that’s the craziness this unregualted system brought)

    The result: about $60 trillion (a guess, becuase it’s an unregulated area) of toxic financial assets built on a $10 trillion housing bubble. This is a system worth defending…in the name fo individual liberty?  The vast majority of the American people will pass on that notion, thankfully.  

  • Festus Garvey

    …sure, we can do nothing…let the free market do it’s thing…things will be tough, but they’ll get moving in a year or so…That is what Paul is selling.

    What he doesn’t tell us is how bad things would be.  Given the condition of the banks and major insurance companies are in…is there any doubt that most banks in the country will fail (or certainly the banks with most of the money will fail) without government softening the fall.

    Fortunately we have FDIC Insurance, but if the Paulites were in charge, we would not have it and millions of companies and people would have lost EVERYTHING.

    But we don’t live in that crazy world that Garrett fantasizes about.  Still if all the banks and many hedge funds and pension funds and who ever else bought or sold all these credit default swaps, the Dow would collapse to about 2000 and millions of Americans would have their retirement wiped out.  Paulites in their twenties won’t be worried; they’ll have time to replace it.  But those who have saved for 30 years and are wiped out won’t be able to do that.  This would be a case of people “playing by the rules” (saving for retirement) would be screwed by individuals who wanted the freedom of selling toxic securities to people and bring down the financial system.

    And will it only be 1 year of pain?  Maybe one year before the last domino falls and a very long and slow crawl back.  Look what is happening now…an investment bank failed, credit freezes up, AIG can’t borrow and goes down…then construction stops, car buying stops and we lose 500,000 jobs a month.  Paul advocates accelerating this.  Let all the banks fail, let all the auto companies fail, let all the supplier companies fail.  Let all the small businesses fail that relied on all the bigger companies (like caters, marketing companies, restaurants).  Then the retailers fail and more are out of work.  Then tax revenue is down and more people are out of work and before you now it, 30% of the country is unemployed, malls are shuttered, downtown’s are ghost towns and every third house is under foreclosure.

    Alarmist…maybe…but given the condition we are in…not out of the realm of the possible and definitely a possibility in the Ron Paul world.

    So people would argue that things will bounce back, that the deadwood was thinned out and everything will come back stronger.  In total…maybe and over time.  It won’t be the 62 year old deadwood that loses their 3 million retirement fund and they’re to old to work another 30 years to save for retirement (and in the Ron Paul world, Social Security does not exist).  The level of personal turmoil and trauma is not acceptable to thrust a society through this…all in the name of ideological market purity.

    Nice bumper sticker, but horrible, horrible public policy.