Direct government manipulation in the financial markets is "Unfair" to small business.
(Inspired by the government bailout of Fannie Mae and Freddie Mac, and the AIG takeover.)
It's been a busy time for the government lately, stepping in and bailing out floundering financial institutions. Lee Rogers from www.funnymoneyreport.com has this to say...
"The one thing that is for sure is that neither the Federal Reserve nor the U.S. government can bailout everyone. We are seeing a mass consolidation of wealth on a wide scale and this is all being done by design. What is happening now is the result of fiscal policies put into place by the Federal Reserve that encouraged reckless lending and borrowing on all levels. This month we have seen a major reshuffling on Wall Street with the U.S. government nationalizing the two largest home mortgage owners Freddie Mac and Fannie Mae, the bankruptcy of Lehman Brothers, the Bank of America purchase of Merrill Lynch and now the $85 Billion bailout of insurance giant AIG.
The end result of this is undoubtedly going to be a disaster, but it is going to be even worse because the Federal Reserve and the U.S. government has gotten involved in the practice of bailing out failed institutions. By propping up failed institutions using the excuse that these companies are too large to fail is nothing short of welfare for the rich and is entirely against the premise of a free market. It is nothing short of economic socialism.
If you are a small business owner and you have trouble paying your bills the U.S. government is not going to come and help you out, but yet the establishment can step in and spend billions on these corporate bailouts.
This is not a good situation and we can expect to see these bailouts contribute to a continued devaluation of the U.S. Dollar and a rise in gold and silver prices. This will occur irregardless of how much these powerful financial interests decide to manipulate the markets.
Essentially what is happening is that these bailouts will serve as a temporary short term fix, but will create more problems in the long term...."
So the question is - should big business have a different set of rules than small business, and is the government involvement in all these bailouts going to be good, bad or ugly for small business overall?
Share your comments and opinions.
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Total Comments (3)
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shocking that this question even needs to be asked. shocking that ANYone reading a blog or magazine or ANY form of literature regarding business would think Government takeover and favoritism in the business world would be a good idea.
Once people noticed that they may recieve a pat on their back for unethical practices, they began to partake in even more; nevertheless, no matter how many people chose to partake in unethical practices they will still remain unethical. Wrong is wrong reguardless of the number of followers!
``THE POWER of IGNORANCE by the PUBLIC ...causes the VOTERS to ELECT FUTURE `MASTERS of SLAVES` ``
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