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Jim Cook

 

RUNAWAY SOCIAL SYMPATHY

Every once in a while I switch the TV channel from Fox to CNBC to see what the liberals are saying.  After listening awhile I get a deep sense of hopelessness and foreboding for our country.  The most important thing for the left is giving money to people.  They are happy to see the growth of food stamps, disability payments, housing subsidies, free healthcare and all the other welfare benefits.  They utterly fail to see the damage it is doing to the recipients.  Whole cities that once flourished have deteriorated into rotting eyesores populated with shambling hulks of chemically dependent drones.  These people are no longer employable.  They have become incompetent and helpless and the liberals can’t see that it’s their doing.

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The Best of Jim Cook Archive

 
Best of Michael Pento
July 13, 2009
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It astonishes me to see how quickly this country has embraced a socialist mentality and how readily it has accepted the belief that the source of our problems was an unfettered free market. Perhaps it is because those in power do not understand what the term free market truly means. If they indeed understood what a free market entails, then it would be impossible for them to lay blame upon it.

A free market can be defined as a certain population of individuals that are allowed the freedom to make independent decisions as to what they want to produce and consume with their capital. It is the votes they cast with that freely allocated capital that provides for maximum efficiency and growth.

But the credit crisis that began last year has been used as an excuse to vilify markets and promote government sponsored usurpations of Detroit and financial institutions. The war against markets was stepped up in June when the Obama Administration sought to overhaul the financial regulatory system. Again the free market was blamed for the greed and excess of banks and Wall Street. The solution proposed was to set up a new regulatory body called the Consumer Financial Protection Agency and to merge the Office of Thrift Supervision with the Office of Comptroller of the Currency. The Fed and Treasury would also have their powers expanded.

The point that government refuses to recognize is simple: it does not matter if you create fifteen new agencies with thrift oversight responsibilities. It wasn’t the fact that we had a dearth of supervision that caused systemic over-leverage to occur. It was the knowledge that if a financial institution got in trouble, the Fed would avail them of an unlimited amount of money at near zero percent interest. As long as the Fed continues to inculcate that bail out posture, the situation is guaranteed to again occur in the future.

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Michael Pento
Chief Economist
Delta Global Advisors
800-485-1220
mpento@deltaga.com
www.deltaga.com
With more than 17 years of industry experience, Michael Pento acts as Chief Economist for Delta Global Advisors and is a senior contributor to GreenFaucet.com. He is a well-established specialist in the Austrian School of economic theory and a regular guest on CNBC and other national media outlets. Mr. Pento has worked on the floor of the N.Y.S.E. as well as serving as vice president of investments for Gunn Allen Financial immediately prior to joining Delta Global.