Peter Klein writes about the obvious, something that every honest person would admit is what is happening-
So, let me get this straight. We’re in a major recession triggered by a collapse in the housing market, itself the inevitable result of government policies, led by Fannie Mae and Freddie Mac, to get the wrong loans to the wrong people so they could buy the wrong houses. The Obama Administration’s remedy is not to let Fannie and Freddie die a long-overdue and merciful death, but to prop them up, to give them additional powers, and to subsidize private mortgage lenders who extend yet more credit to more borrowers who can’t pay it back, thus making what might have been a temporary misallocation of the housing stock into a permanent one. Brilliant!
He then goes on to write that its the irresponsible who are being rewarded while those people who lived within their means – renting, or only buying houses whose mortgage they could afford to pay – are being punished for the same. “These people are Bastiat’s unseen. For them, Obama’s housing plan is a giant slap in the face,” he says.
And there is a great comment on the post, by one such unseen-
In Quebec we have a Warren Buffet type of investor named Stephen Jarilowsky who, in a recent article, wrote about how the imprudents have caused pain to many. Being one who has always been an “unseen” all my life – 401K, money aside for children’s education, no credit card debt ever, owning a house I can afford to renovate – I’m beginning to feel robbed. Our supposedly right leaning conservative government has caved in to the opposition’s demand and will pour money in economy stimulating projects and plans a 80 billion deficit for the next three years. Like Xerxes’ messenger says in the movie 300 : This is madness !
Where do we take the train to Misesland ?
Unfortunately for him, and for every honest person out there, the train to Misesland has been hijacked by crooks like Bush, and Obama, and Brown, and Sarkozy and every politician in the world who survives merely because he has the ability to legally steal and hand over the spoils of the loot over to his constituency. I quote Bernard Shaw yet again-
“A government which robs Peter to pay Paul can always depend on the support of Paul.”
The Pauls have it. The Pauls have it.