štvrtok, októbra 11, 2007

The State´s Philosophy: Intervene, Create A problem And Let Pay All

Falling real estate market in the USA leading in growing number of homeowners unable to pay mortgage tries to rescue except the FED also the government. It wants to subsidize unpaid part of a credit to these poor people.

Well, again brilliant example in what a blind circle does etatist´s action exist. The Central (=state) bank manipulates interest rates that don´t reflect real needs of people. When the market starts to purify from bubble activities after all, the government strikes with „good“ intention to help. But it helps only banks to attract new borrowers who can rely on him in a bad times. Agony will only deepen and overextend. And even more at the expense of all people.

Create problem by forced encroachment on market and solve it by another intervention. Preferably in such a scale that as many as possible citizens have to pay it. That´s the philosophy of every state.