Bankers, Politicans, and Fear…oh my!

I am still recovering from my hanging at the Tree of Liberty this fall, but I had a couple of quick points I wanted to make this morning….

#1: http://uk.reuters.com/article/ousiv/idUKTRE5125WS20090203

Barney Frank says: “As I’ve said to a couple of bankers … people really hate you and they’re starting to hate us just for hanging out with you”.

If I were in the bankers’ position I would point out to the good Congressman that, in truth, it’s just the opposite.  People are starting to hate bankers (and other businesses) for spending so much time with their hands out on Capitol Hill next to the Apex of Hate: politicians.  Birds of a feather generally flock together.  Turkeys, perhaps.

#2: http://news.yahoo.com/s/ap/20090204/ap_on_go_pr_wh/obama_stimulus_3

“President Barack Obama says the recession will turn into a “catastrophe” if the economic stimulus is not passed quickly.”

Forgive my naivety, but isn’t this just more of the “Politics of Fear” that Obama promised to deliver us from?  What exactly is a “catastrophe”?  15% unemployment?  30%?  $20T bailouts?  Record low approval ratings?  Loss of a little of more of that Holy Glow the People love to bask in?

Capitalism has existed since the early days of barter and trade (“I’ll give you a pretty stone for some of your mammoth meat”)….it’s not going anywhere (unless, or course, it gets systematically replaced by another form of a government enforced and regulated economic system).  Hmmm.  I think the real fear is that given a long enough time-line, the markets will correct themselves and the truth that all this government regulation is not only unnecessary, but also detrimental, would be revealed to the masses.  No more excuses for growing the Government.

There is no part of the administration of government that requires extensive information and a thorough knowledge of the principles of political economy, so much as the business of taxation. The man who understands those principles best will be least likely to resort to oppressive expedients, or sacrifice any particular class of citizens to the procurement of revenue. It might be demonstrated that the most productive system of finance will always be the least burdensome.
Alexander Hamilton

Tags: bankers, Barack Obama, Barney Frank, catastrophe, economic stimulus, politics, Politics of Fear