Bush's Socialism Shortens the Recession
Which leaves me somewhat confused regarding everyone's misperception of what Socialism actually is and is not.
Don't get me wrong, I'm a firm believer that the business of America is business. As far as I'm concerned, if General Motors and Bank of America go down, you might as well use your dollar bills for kindling after the power goes out. The American economy is way too important to the entire planet to be allowed to falter and die. The global economy is, to the chagrin of some, far more global than anyone really cared to admit. It being the most coveted market in the world, if the United States goes down, it takes the fortunes of every off-shore enterprise with it. Flushed along with your domestic job are thousands of foreign dependents, knocking out the foundations of other countries' economies, the strongest of which barely hold their own even in good times.
So it makes sense to me to help things along. Just as a father instills character in his kids by providing matching funds for their cars instead of simply buying them, I see no real issue with bolstering support for a national economy that drives the international economy. I especially have no problem when (as has happened in the past) the government program turns a modest profit for its taxpayers. What could be more capitalistic than that?
Yet there are Conservatives out there who object to the program as Socialism. In one sweeping move, they decry any means of injecting a speedball into our national economic arteries as socialistic. Curiously, the Socialism to which they object carries over to tax increases, but doesn't attach itself as easily to tax cuts. Aren't both products of government intervention? Even if you subscribe to this latest definition of Socialism, shouldn't it apply equally across the board?
More to the point, if Conservatives insist on calling the bailouts Socialism, aren't they labelling George W. Bush, arguably the most conservative president in American history, a Socialist?
I can't answer that one just yet, but one thing I can tell you is that this "recession" isn't going to last nearly as long as anyone in the media thinks. Despite the volatility of the stock market, there's still plenty of money out there. And it's the smart money guys that are going to make sure this recession doesn't last long. You want to know why? Because it's way too huge a profit opportunity, that's why. Here's the proof:
You may have read about all the vanishing wealth from this economic turbulence. Really? According to Reuters, October 24, 2008, it hasn't vanished at all. It's simply been diverted from commodities like oil into real estate:
Sales of previously owned U.S. homes rose 5.5 percent last month, the biggest gain since July 2003, and the inventory of unsold homes fell, a hopeful sign for a housing market mired in a long slump...The National Association of Realtors said on Friday that sales of existing homes rose to a 5.18 million-unit annual rate from the 4.91 million unit pace set in August. Economists had expected sales to rise to only a 4.93 million unit rate.
Still think I'm nuts? Check back several blogs ago, when I went on the record to state that gas prices at the pump would start falling just as soon as the market manipulators grabbed their profits from that little panic. Never before have oil prices jumped as high and then fallen as fast as they did in 2008 -- totally according to plan:
Hmmm. Where can we put all that money, do you suppose? Why, in foreclosed real estate , of course! It's next on the buy-low-sell-high circuit. And as soon as all that capital quietly snaps up all those foreclosures, guess what's next? Institutional stocks. Banks. Industrials. All those companies that the smart money boys need to rehab and finance those foreclosures they just bought.
Housing prices recover. Companies start hiring again. The consumer economy breathes new life. And Joe SixPack gets his home equity back, enabling him buy that 60 inch plasma television which, after five years, will be paid off at twice the price it should have cost.
And who do we have to thank for this quicker recovery? America's first Socialist president, George W. Bush.
I mean, it was his idea, right?