"U.S. Loan Effort is Seen as Adding to Housing Woes"
No kidding! What a surprise. Anyone with any game theory could have predicted this.
But the Obama administration will continue with programs that do more harm than good. Why?
Because they suffer from a fundamental fallacy. They believe they can create legislation and programs that solve problems. Programs simply create artificial structures that creative people then have to work around. The unintended consequences tend to be worse than the original problem.
Just like the Bermuda Triangle that is said to swallow ships. The Washington Beltway appears to swallow respect for the individual decisions and creativity. They must believe that there is are problems that exists because of the lack of a program or legislation. That there are vacuums of economic efficiency that the market never fills. These vacuums can only be filled by a government program. They must believe that they can define the programs that solve problems and "poof" the problems go away.
We will always have problems.
The solutions will come from our individual and collective intelligence and creativity...our courage and optimism. There are no economic vacuums just waiting for a government program.
The whole housing crises is itself the results of unintended consequences of the Feds low interest rates, the Community Reinvestment Act, Fannie Mae and Freddie Mac's loan guarantees.
As I have said before (and will undoubtedly will say again it is arrogant to believe that I can sit in Washington DC, review economic data, create a program that takes money from Peter, gives it to Paul and people will act like pawns and fulfill their expectations. It is really an elitist view of the world that sees us as victims just waiting for salvation.
Please, just stop with the programs. Give us a stable rule of law and let us solve our own problems creatively.
Sunday, January 3, 2010
Just like "Cash for Clunkers" created more environmental damage...
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