Regulation: You’re the Sucker in This Game

Posted by on Jun 24, 2012 in American Economy, Dollars & Sense, Economy, End of Capitalism, Free Thinkers, Hard to Believe, In the News, Media Ignored, Missed the Point, Regulation, Suckered, Truth & Lies | 0 comments

“If, after the first twenty minutes, you don’t know who the sucker at the table is, it’s you.”  ~David Levien and Brian Koppelman, Rounders

Leave a pile of cash on the sidewalk. Do you expect the money to be there years later? 

Reckless monetary policy essentially dumped piles of cash on the sidewalk. Even honest businessmen are tempted to grab some when they see the pile dwindling and no one being held accountable. Most of us didn’t grab a handful because we are too ethical…or was it because no one told us where the cash pile was?

What happens when the sidewalk cash disappears? Do you think licensing, bonding, and regulating everyone that uses sidewalks is the answer? What a ridiculous solution! It’s amazing that every egghead that spews such idiocy isn’t laughed out of the public eye. A blue ribbon panel of know-it-all regulators cannot change human nature. The commonsense solution: stop leaving money on the sidewalk.

In 2002, Robert Blumen summed up the effect of the activities of Fannie and Freddie on the housing market and the systemic risk and foresaw a coming bailout. He was not alone in predicting the crisis and identifying it’s cause before it happened [accurate public predictions before the crisis]. Those people were silenced through ridicule and scorn.

The U.S. Economy is a game, and that game is rigged. First came the loose money supply, which was dumped into the housing market. Of course you knew this and wisely invested in high return mortgage backed securities, right? Yeah, me too… most of us missed that government sanctioned money grab. Not to worry, there were plenty of Goldman Sachs, Wall Street, and government insiders that capitalized on the windfall.

What about the risk you ask? Forget about it, those that created the game can manipulate the best government their money can buy to bail them out. Market research indicates the suckers (me and you) will fall in lock step when the phrase “economic collapse” is thrown about freely. Trillions in wealth has disappeared (from me and you), but the priviledged few that engineered the game have retained their wealth. Henry Paulson amassed a fortune estimated around $700 million while running Goldman Sachs, he kept every penny and even cashed out tax-free by becoming the Treasury Secretary. Henry Paulson is one of the many insiders that is both Wall Street and government. It’s probably a much better investment to become the government instead of buying it.

So now your thinking: “Let’s regulate them!” Of course you’re thinking that, we all are. The idea has been repeatedly broadcast by every major media outlet in the world. Dr. Herbert Krugman’s effective frequency (repetition of an idea) ensures that regulation is always our first thought, often our only thought. The people that engineered the crisis have been involved in every step, sat at every policy council, and even directed the Fed response. This con has been performed in the glare of the public spotlight. Luckily for them, we are suckers – plus those guys are kinda boring.

The insiders are pushing regulation. Of course they are, regulation protects the insiders from competition (try to start a banking home business). Regulation centralizes the power, the resources, and the money. It’s much easier to buy political power when it’s all concentrated in one place. Regulation didn’t protect you from the monetary policy that lead to the mortgage-backed-securities-game that siphoned $50,000 in lost wealth from every Family in America. According to numbers issued by the Federal Reserve: families’ median net worth fell almost 40% between 2007 and 2010. The suckers always foot the bill (this last point was not mentioned in the Fed report).

Who caused the crisis? Fat cats and government. Who have we given the authority to fix the problem? Fat cats and government. Why? Because they told us to.

Wait a minute, let’s give reason a try. Finance is the most heavily regulated industry in the world, and pretty much always has been. Every collapse, bubble, hiccup, con, and fraud that comes out of the world of finance has led to more and more regulation. Each time government fails, they are rewarded with more money and more power.

So what should we do? I don’t know, I doubt anyone knows – even if they say otherwise. There’s just one obvious next step: ignore what the insiders and their government tells us to do. The federal government appears to be bought and paid for by special interests.

Reverse the flow of wealth and power back to the people. An unregulated economy and finance sector is sure to steal from people now and then – but when they do, it will be for hundreds, thousands, maybe even millions of dollars. The heavily regulated finance sector stole TRILLIONS from us. It wasn’t the first time, it won’t be the last – as long as we continue to do what we’re told.

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Health Care Reform – A Libertarian Solution

Posted by on Sep 5, 2009 in American Economy, Dollars & Sense, Free Thinkers, Regulation | 7 comments

Our steady movement toward reliance on third-party payment no doubt explains the extraordinary rise in spending on medical care in the United States.

- Milton Friedman

Why anyone would turn to government to fix the economy, poverty, drug problems, and now healthcare is a mystery.  Ask yourself:  “What has government fixed in the past that has worked out well?” Offhand, my answer to that question is “Absolutely nothing.”

Take a look at the most heavily regulated industries.  Take a look at industries in which government subsidies and funding play a big role.  These industries:  education and healthcare stand out as receiving the most interference from government over the last 20-30 years.

Now, let’s look at segments of the economy that have outpaced inflation:


As we have allowed government intrusion into education and health care, the costs have skyrocketed.  So what is the simple answer to this problem?  Cut Cut Cut – reduce government regulation, reduce government intrusion, end government subsidies.  Dump the FDA, undo the mistakes we’ve made in allowing government to become more involved.

If we all start to see government is a problem, not a solution we are on the path to lower taxes and lower prices for goods and services.

We still need to work on the mess with the insurance industries.  It is a ridiculous situation where no one asks about costs, no one shops around, and everyone chooses overpriced name brands over generic products.  If everyone had some out of pocket expenses with medical care, costs would go down.  Doctors and hospitals would be forced to compete and become more efficient.

In a perfect world, we could also look at tort reform too – but do we really trust government to put together a piece of legislation that benefits the people instead of the law firm lobby (which contributed $233,912,817 in 2008)?

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Government will Succeed This Time! Yeah right…

Posted by on Nov 1, 2008 in Dollars & Sense, Economy, Free Thinkers, Regulation | 4 comments

If you put the federal government in charge of the Sahara Desert, in 5 years there’d be a shortage of sand. — Milton Friedman

When government fails, they are rewarded.

When terrorists attacked America (representing a failure in law enforcement and intelligence) we gave more money and vastly more power to government. As long as we are the world police, we’ll have enemies. Eventually we’ll see another attack, how much more money and power can we give?

The Federal Reserve Bank was set up to smooth out the free market depressions of the 19th century. Only after the creation of the Fed did we have the GREAT depression. Even then we didn’t learn. We gave government unprecedented power to fix things. It took over 10 years when normally depressions only lasted a couple years.

Did that teach us anything? Remarkably, NO! Now with our current economic crisis we are once again giving government unprecedented power and money to manipulate the economy.

Do we really expect these monkeys pulling levers have any clue what they are doing? When the market crashed in ‘87 Reagan decided to do nothing. That recession was over in a couple years. Let’s see what happens this time. If history has told us anything, with government meddling it will likely last much longer than a couple years.Government is in charge of k-12 education in America. Despite spending more per capita than any other nation on earth, our students rank among East European and Third World nations. What is government’s answer? Give more money and more power.

Government decided to help students pay for college education. Since the early initiatives, the cost of higher education has gone up 500%. Faster than every other segment of the economy. What’s the answer? Of course, let’s give government more money and more power.

Government regulates and helps to finance health care. This segment of the economy has seen cost increases of 300% in just over 15 years, faster than all other segments except higher education. This mess is a result of lobbyists buying votes (the Prescription Drug Plan), massive regulation, and businesses working the government red tape (insurance companies). What’s the answer? Give government all the money and all the power — nationalize it!

Government now controls our banks. Government is likely to move into automaking, airlines, and who knows what else. They are sure to make a mess. But let’s all save our pennies (if we have any left), because when they fail, they’ll be demanding more money and more power to fix it.

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Reduce Oil Prices by Regulating Speculators?

Posted by on Jul 12, 2008 in American Economy, Blogroll, Dollars & Sense, Falling Dollar, Free Thinkers, In the News, Missed the Point, Oil prices, Regulation, Suckered, US Dollar | 4 comments

As the dollar falls, oil prices go upNo…

Government intervention will make the problem worse. Didn’t we already experience what happens when government interferes with the free market while Carter was president?

Speculation makes markets react faster and increases liquidity.  Without liquidity the market could be much worse and subject to larger price fluctuations.

Speculators are not the problem.  The number 1 problem is government created:  The Gulf War has cost 600 Billion dollars.  Rather than force Americans to pay for this in taxes, the government has borrowed and printed money.  This has caused the dollar to crash in value.  Oil is a commodity, just like gold, copper, and steel.  All of these items have gone up in dollars as the dollar has gone done in value.

If the dollar held it’s past value, oil would be under $100 a barrel.

Besides the crashing dollar, other significant causes are:  increasing demand from Asia, decrease in new discoveries, subsidized gas in China, and high per capita consumption in the U.S.

Speculation is a debatable factor.  I don’t think it hurts us, but I know government interference will!

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