Sunday, June 29, 2008
This is command & Control economics. It is not capitalism!
Debt is snowballing with some 2.6million in arrears. The government thinks it can solve the crisis by backing 30yr fixed rates and monetising household debt via the Feral Reserve system. Not everybody is behind the scheme. Some Republicans, like Senators Jim DeMint of South Carolina and Jim Bunning of Kentucky, say the proposal would use government subsidies to bail out reckless lenders and borrowers. They suggest that the housing market will correct itself more quickly if Congress does not intervene.