In the wake of the mortgage “crisis” we all should have expected the government to come riding in on a white horse to save the day and then promptly take over what we individuals are so clearly incapable of handling ourselves. Bailouts have been proposed (for people too stupid to realize that they can’t afford a $750,000 mortgage on a $30,000 per year income) and now Treasury Chief Paulson is proposing a vast expansion of government oversight of the financial markets.

Paulson said, “Government has a responsibility to make sure our financial system is regulated effectively.” Really? Hmmm…I don’t have my copy of the Constitution handy, but I don’t remember the part about government responsibility to make sure greed and stupidity don’t combine to create a financial mess. I suppose that public school education is failing me…

Not unlike parents rushing in to make sure their kids don’t suffer the consequences of their behavior, Paulson proposes that “the Fed would essentially serve as a financial markets moderator, stepping in if the nation’s markets were again threatened by an episode like the near collapse of Bear Stearns” (cnn.com).

The fact of the matter is, thanks to government bailouts and band-aids on the financial markets, the mortgage crisis or something similar is bound to happen again. We haven’t learned our lesson, and no amount of government regulation is going to help. As much as it pains me to say it, we’re going to have to face economic collapse before those in power figure out that what we need is less government, not more.

But, it’s an election year. So I’m sure we can expect further bailouts, payoffs, and regulatory proposals in order to convince the idiot citizenry that the government is “doing something.” All at the expense of future economic stability.

Advertisements