There is no provision in our Constitution to bail out anyone or any business or financial institution because of poor decision making, as our President and Congress did in 2008-09. I believe businesses, banks, cities, unions, and individuals should be treated the same. The rich or anyone else should not be given money or special privileges because of poor or risky decisions.
If, at the start of the 2008 Great Recession, President Obama would have acted like President Harding, we would have emerged stronger and better off. Have you ever heard of the Financial Crisis of 1920? Probably not.
That’s because President Harding did not bailout anyone. Instead, he shrunk government and the depression was short lived and now forgotten. Click here to learn about the Forgotten Depression 1920.
Though it may have been painful in the short run, free-market capitalism would have survived and restructured. When this restructuring ended, healthier financial institutions and corporations would have emerged. Homes, commodities, and other assets, which were overvalued at the heights of 2007-08, would have dropped in price, as the market reset. Prices for the “little guys and gals” would be affordable, again.
The greedy would have learned deserving lessons and so would those who watched from the sidelines. Instead, banks were bailed out like spoiled children and learned little as a result. We do not have those hard fought memories, which my grandparents retained after the Great Depression of 1929. I fear, our next financial crisis will be several multiples larger than what we experienced in 2008, because of the moral hazard of government intervention
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