Market Crisis

Just so we are clear, “the market” is that thing managers put our money in for us and put it where they think is best.  So, even though we have not actually taken away our money from a certain stock, someone else has done that for us.  Therefore, technically, we have no confidence in the market.

And now, in order to restore confidence (that we apparently do not have) in markets (that I apparently participate in), our government (that we apparently run) will spend money (which I know we do not have) in order to help qualm the crisis of confidence (that apparently is ruining the economy).

Well then, hooray for the consumer driven economy.

To think that this all started with over-valuation of assets; that is to say homes.  Many of those homes were financed by mortgages under terms that were not exactly friendly to the owners.  A long story made short: a consumer driven economy that relied on money and credit from the value of homes, which were overvalued.

I'm afraid this will not end, until the market prices for homes are realized.  And the most frightening aspect is that we have so many politicians who yell out for “free market capitalism,” yet, are here about to give taxpayer money to help firms with their bad choices.  I guess the free market isn't so free after all.


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