January 16, 2009

Frustrated by the Economy

The more I hope and hope that Washington will get things right and help with judicious fiscal policy the more and more I'm let down. As much as I hate seeing people loose jobs and be out of work and as much as I hate seeing people loose their homes it seems like the government intervention to try to stem these tides is simply wrong headed. I guess, to me, it proves that people can't really be responsible with so many competing interests.

Much like Atlas Shrugged, the book, my thought process at this moment in time is that the government simply needs to stand aside and let things shake out. It will be painful and potentially hard for a number of years but the more they intervene the worse it seems to be for the future. I guess sometimes the most responsible thing to do is let the system implode upon itself and strive to be "smartly reactive" in helping business and the private sector pick up the pieces through tax breaks, incentives, and less regulation.

Arguably the best way to regulate the banking sector was to let them fail and the market to punish them. It is an unfortunate reality that we could all be caught up in that and thus the government stepped in stopping mass hysteria which could lead to anarchy. At this point though people have had an opportunity to move money around and be more prudent and perhaps a massive banking failure from BofA and Citi would not have as enourmous implications. Hard to say.

My moderate side hopes the government will be prudent and wise the hawkish side of me says they are incapable of fixing the problem without creating more worse issues.

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