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Name: Blondie
Location: Redmond, WA
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Bad Markets?

Let's see if I understand this.  The cap and trade bill will create a “market” for carbon in order to get people to create less of it. But I thought markets were inherently evil, causing otherwise good people to become greedy.

Take those evil banks that wouldn’t lend to minorities, closing them out of the housing market. Everyone deserves a good home, so government had to step in with new laws and create the taxpayer-backed Freddie and Fannie, in order to force those greedy bankers to loan money to minorities so they could buy houses. The next thing we knew, those evil speculators tricked a bunch of poor people into purchasing houses they couldn’t afford; and other evil speculators bundled the loans; and the evil Wall Street executives bet American’s retirement money on the bundles, until it all came crashing down on itself. Then the government had to bail out those “too big to fail” on Wall Street and the banks. Now the greedy Wall Street and bank executives are getting paid too much, so the government has to restrict their pay and realign it to lower the risks they take.

Another example is our current healthcare market. We’ve been told the evil insurance companies don’t care about patients and do everything they can to restrict necessary procedures. (Don’t ask me why the healthcare plans include forcing every American – strike that and change it to every resident in America – to purchase health insurance.) Additionally, doctors are cutting off diabetics’ feet and removing children’s tonsils to make a profit. (Maybe we should keep diabetics and children away from these greedy doctors.) The healthcare market is so bad that the government believes it will be able to squeeze out the waste in order to cover more people at a lower cost per person. And we can’t even consider ideas like selling insurance across state lines or allowing individuals the same tax breaks that employers receive for purchasing health insurance. We all know that allowing more market freedom would just cause more greed and evil-doing, which would then require additional government involvement in order to save us all.

Geez - with all of this evidence of market evil, the last thing we need is to create a new market. J

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Big Business To Get Bigger Under Obama Administration

Upon hearing that the Obama administration forced the CEO of GM to resign and directed the execs to re-do their plan to get more bail-out money by the Obama administration, a friend of mine said it's about time big business gets put in line.  I'm not going to argue the virtues of big business.  I will argue, though, that this is definitely not an example of a big business getting put in line.  In fact, I predict that GM will have a significant competitive advantage thanks to Obama's intervention.
 
Counter-intuitive?  Well, let's look at what Obama said during his press conference this morning regarding the auto bailout.  He said that in order to help auto makers, the federal government would purchase more fleet vehicles.  Will the federal government purchase from the low cost provider?  Or perhaps from the provider of the most fuel efficient vehicles?  Of course not.  After giving billions of dollars to GM, do you think the taxpayers wouldn't be in an uproar if at least the vast majority of these fleet vehicles weren't purchased from GM?  Of course they will.  And the Obama officials want to stay in power, so they will bow to the will of the people - of course in the taxpayer interest.  So GM gets more business, without having to compete for it, and without having to provide the best product.  And let's not forget the billions in taxpayer money GM will receive to shore it up.  (We all know that now that Obama has taken over, whatever plan that is produced in 60 days will meet his requirements for further funding.)
 
What about the former CEO of GM who was just asked to resign?  He walks away with over $20 million and no longer has the long days and nights of worry.  My guess is he'll be okay.  Is it right for the President to force a CEO of a private company out?  No - it is fascist.  But I can understand the argument that once a company takes money from the government, the government can tell them what to do.  (Remember that, all of you who receive the so-called "Earned" Income Tax Credit.  And those of you who want the government to pay for your healthcare.  Do you like this scenario, soon to come to a DMV-style hospital near you?:  Sorry, but you have been refused for this life-saving operation.  You already used more than your fair share of healthcare over the last 10 years.  Plus, you're retired and not producing.  So go home, take these two pills, and die quietly in order to decrease the surplus population.  Next in line, please...)
 
The bottom line is that the Obama administration is picking winners, and those winners will receive substantial advantages over their current customers and potential new, innovative customers.  So what's the answer?  We have a system in place to deal with failing companies - one that has worked for decades.  It's called bankruptcy court.  Bankruptcy judges and their staff are experts at helping companies to reorganize or divest their assets.  They have the training and tools at their disposal, not to mention the experience.  Would GM survive?  Maybe and maybe not.  Either way, they would not be given the best end of an uneven playing field on a silver platter.  Now that, to me, is fairness.
Tags: capitalism  
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