So, This Is How A Free Market Works

Ever since Ronald Regan's rule in the 80s we have been moving away from a regulated market. Our republican leaders have preached on the ill of governmental regulation and the wonders of the self correcting free market. They have spoken with an evangelist's fervor on how, by removing the burden of following government imposed rules and standards and letting the natural economic rules of survival of the most fit, American business and a market economy would manage itself.

And now we get to see this free market correction in action.

The Fed said in the plan announced Sunday it would lend to the two companies “should such lending prove necessary.” Secretary Henry Paulson said the Treasury is asking Congress for quick approval of a plan to expand its line of credit to the two companies and to make an equity investment in the companies, if necessary.

For the last almost 30 years we have been following this economic model. The Republicans and the DLC Democrats have both embraced the idea that free market 'economic regulation' was far better and far cheaper and far more effective than government oversight.

Yea, this is working great isn't it. How about we let this lie die and get back to having our government do it's job.


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Economics