This site is like a broken record (yes, that’ s a cliché). But I guess that’s what education is all about. If our “policy makers” would consult genuine policy experts (instead of frauds), our government (local, state, and federal) would make a lot fewer messes.
Last month I linked this: “No Evidence That AIG Bailout Prevented a Meltdown.”
Here’s more. Vern McKinley is a Research Fellow at the Independent Institute, and he has a new book out, “Financing Failure: A Century of Bailouts.” It looks likes a book that all of our ill-informed “leaders” need to read. Here’s an excerpt from the book’s promo page:
During the recent financial crisis no issue has aroused more passion than financial institution bailouts. The standard rationale for the bailouts has been one of necessity and fear: federal regulatory agencies must have more authority in order to respond to the crisis, or else the public will face terrible consequences. But does this rationale hold up to close inspection?
In Financing Failure, Vern McKinley approaches the topic by examining the policy decisions behind the bailouts and by showing their connection to previous government interventions. He brings under scrutiny the policy decisions made by the Treasury Department, the Federal Reserve, and the FDIC during the crisis of the 2000s and links them to policies that go back as far as the 1930s. This history of bailouts reveals that the genesis of financial crisis is government policy, be it the mismanagement of monetary policy during the 1930s or the political push to expand homeownership that helped cause the 2000s crisis.
The nation’s federal financial regulators and the politicians claim to have saved the American economy. In truth they have done everything within their power to expand their own influence—often far out of view from the public and media. Instead of openly explaining their actions, the bailout agencies have attempted to prevent the public from reviewing their decision-making, often at tremendous cost to taxpayers. McKinley’s painstakingly researched and clear-headed analysis of bailouts and government intervention shows that the American public has accepted too many official pronouncements at face value, and that reining in the federal regulators is a necessary step toward truly promoting the safety and soundness of the financial system.
There’s more on this page, and on this page, so keep on reading…and the next time you see the person who represents you in Congress, insist they make themselves useful and go to school by reading this book.