Archive for the ‘Bailouts 2008’ Category

Kos joust on the Financial Time Bomb

November 12, 2008

Here’s my retort to a charge of amoral dogmatism on Daily Kos.

 

I can see how you would guess I am dogmatic when being insulted.  Righteous annoyance sometimes brings out a few extra adjectives from me and often people are deafened by the excessive amplification.

Writing in unbroken logical syllogism is pedantic and boring and bloated.  My unamplified points are:

1- the financial crisis was a setup by the left in that Fannie/Freddie and other GSE’s were shielded from risk oversight.  Worst case for the left: subsidies would continue forever, best case: if the bubble burst, the crisis would force a bailout and more progress towards de facto socialism (the ideological goal of the left), as happened in the S&L debacle.

2- the well will go dry eventually, and a true depression will be the only way America will get its work ethic back.

Admittedly, there are also regulatory failings regarding securitization, mark-to-market, and truth-in-lending, but those would not have caused the meltdown on their own if Fan/Fred had not offered the black hole of value by buying up crap, knowing they would be bailed out if it collapsed.

But if I had made these points, and argued them logically, I would not have forced you or others to defend yourselves EMOTIONALLY. By coupling vulgarity with ideological insults, and ridiculing the most caricatured (but real) characters in the left’s cast of “leaders” and “workers”, the meta-point would not have been made: 

This is an ideological cold war.

The statists (like yourself I assume) who have and will continue to sacrifice economic growth and technological freedom to reach egalitarian goals have made this economic downturn much worse than it would have been, and worse yet, I KNOW most of you are ecstatic that the government is no taking de facto control over several formerly private institutions, as were your great-grandparents when Wilson created the Fed and passed income tax, as were your grandparents when FDR defecated the New Deal on America, as were you parents when LBJ poisoned the underclass with the Great Society. 

Now you have your statist coup merit badge.  Congratulations, you’re an Egalitarian Scout, the highest Ludd honor.  Your time bomb worked (with the aid of the libertarian-in-name-only Alan Greenspan).

I believe in government protection of the borders and of property rights, enforcement of informed (non-fraudulent) transactions, free but competitive markets, reasonable regulation of safety, wealth transfer to the truly disabled, and emergency care for those whose lives are in imminent danger.  So I’m not a laissez-faire airhead, I just believe in maximizing the meritocracy.  Economic growth is critical to species survival.

But the rest of government is basically a tremendous impediment to the aggregate increase in human living standards.  Unsustainable entitlements and extreme looting of all successful people is going to cause all wealth and living standards to contract, and many will die as has happened when collectivism became dominant in the USSR and China and many other places.  I’ll stack libertarian morality against statist morality any day.  Whose ideas have killed more, Adam Smith’s, or Karl Marx’s?  Without the industrial revolution and relatively free markets, the world population would still be under a billion. Which ideology trends toward specied survival, and which towards species extinction?

Parasite is the right word, because even if you have a private sector job, you advocate and vote for collectivism.  A thief with a dayjob is still a thief.  Out of touch?  Maybe at one of your effete altruistic blank-slate scribbling social-engineering soires.  I hang with people who innovate and add value ALL DAY, with no government help.

Now wasn’t that boring? Remind me not to be nice anymore.  This is a war, after all.

Took a dump over on the DailyKos today…sick of these bailouts

November 11, 2008

Thread 1 dump:  A “Paul Broun is crazy” clusterfuck

Thread 2 dump: An Auto Bailout Circle Jerk

Text of my rant:

You statist punks on this thread must be creaming in your collectivist jeans over these daily bailout calls.  This is the 72 virgins you dreamt of when your pillowbiting Knight in Shimmery Satin, Barney Frank and his p_ss-boy Chris Dodd aided the sabotage of the housing market years ago.  The inevitable socialist coup going on now must be like a never-ending orgasm for you Leviathan-knob-slobbers.

F_ckin parasites, all of you. But be careful what you wish for. There is only so much tax extortion money you can use.  You can’t bail out every bloated, overregulated, govt co-opted, union-slacker-infested dinosaur.  Some will die a horrible death, with screwdriver turning union idiots losing their 45$/hr jobs that would be $10/hr in a free market, and losing their pensions, and having to work their last 5 years for Toyota at 1/3 the pay.  Justice served for parasiting for so many years.

And when the money runs out, you useless b_stards might just have to compete and add value to stay employed.  Or do you all still live with your mommies and breast-feed when for comfort when you worry about having to get a real job?

No charge for the Luddhunter’s tough love today.

AIG Takeover: Socialism as Remedy to Bad Regulation

September 17, 2008

My post on AIG article in the Economist:

So now socialism is the remedy to repair capitalism crippled by bad regulations?  Why not consider regulatory reform first?

The laws, regs, and policies are bad in several ways, and here are the root causes, in my layman logic:

1. Political Correctness. Lawsuit rulings against redlining becomes legal extortion that forces banks to give loans to high risk borrowers. Banks need a way to reduce risks of these loans or unload them.  The bad loans get so ridiculous because the overseeing authorities also get infected with politically correctness, and ignore obvious bad signs in borrowers.

2. Government Guarantees to Bad Loans.  GSE’s like Fannie/Freddie buy the bad loans in huge quantities, thus giving banks a way to unload the worst loans. They now are not incentivized to self-police their loan risk.

3. Intertwined banking functions.  Investment banks get into loan markets and compete with consumentr banks, except they get to bundle bad loans into massively interconnected securities like derivatives. AIG sells expensive insurance to investment banks who know that the bundled bad loans are ticking time bombs when housing prices eventually fall.  Investment banks buy up many more bad loan bundles, using their existing ones as collateral.  The whole mess is leveraged incestuously and becomes a house of cards depending on housing prices never falling again.

The reform has to be more transparent and ethno-geographically independent loan criteria, abolishing de facto housing welfare GSE’s like Fannie-Freddie, and separation of banking functions to make bundled investments intelligible.