Thursday, October 9, 2008

Shift to What?

I just read an article in the New York Times that the government is looking into seizing control of certain banks so they can manage them, and attempt to stop the financial crisis. This information is simply stunning. The Republican party seizing control of banks. The party that supports deregulation and the free market. This goes against their platform entirely, and shows just how bad our economy is.

The basic plan would be that the Treasury can use the bailout money to give cash to banks who request it, and then the Treasury can take ownership positions in these companies to try to alleviate any concern about the economy. This is turning out to be an option being favored by many of those on Wall Street, but to me the whole idea is scary.

The fact that the free market can no longer work on its own any more, and the governments admission of that (admission through their action at least) is frightening, and probably the reason why so many investors are skeptical. What the government would be doing is an act and a policy bordering on socialism. I would also like to mention that the British have also nationalized a part of the banking system, and the country of Iceland is on the border of bankruptcy (or was I believe they are receiving a loan from the Russians) and if Iceland's economy were to become bankrupt it would have massive repercussions throughout Europe as many of Iceland's banks are invested in European companies. Also because of this current crisis Iceland has declared a national emergency and seized control of the banks in order to maintain stability.

All of this news piled up onto each other is increasingly surprising and scary. And once again the most surprising thing to me is the fact that all of these socialist-like policies are occurring under a Republican presidency. I better not hear the president ever accuse Senator Obama's tax plan as socialist (as many conservative thinkers have).

All of this is happening faster than I can take in...these events not only show how bad the economy is, but also how desperate the government is. We are going to look back on this history and realize how significant this all is. This is as big as 9/11. The landscape of the world has shifted. For better or for worse no one knows. Are we moving as a world to the unified Socialist ideas of Marxism? His "prophecy" was that the whole world together was going to need to be operated by socialism in order for it to work...and that all the events in history lead up to a point where everyone together turns to Socialism. No one knows. I'm guessing the answer is no. If I'm right according to Marx we are only delaying the inevitable. I'm not saying I agree with Marx...just saying that the events in the world are bring up the thoughts and ideas he once preached.

The only thing I do know is that this world has changed. And that the next president is going to inherit a big problem, and I severely doubt that our economy will be back to normal by their first term.

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