Capitalism vs. Socialism vs. Now
Capitalism:
Lenders grant home loans only to those who have shown an ability and willingness to repay them. In time the borrowers pay back the loans and own their homes outright. Borrower wins. Lender wins. Economy wins.
Socialism:
In the name of “affordable housing” the government coerces and / or requires lenders to make home loans to special groups that do not have the ability or the inclination to repay the loan. The lender is told that he can’t lose because Fannie and Freddie will stand behind the bad loans. The borrower doesn’t repay the loan so they are forced to leave the home they couldn’t afford. Borrower loses. Lender loses. Economy loses.
We have not really had capitalism for quite a few years, we really have had a socialistic economy.
The government has had the hands arm pit deep in the economy since 1913 with the creation of the Federal Reserve. We have not had a free market or true capitalism since that time.
It is high time that capitalism stops taking the heat for the failure of socialism in our economy.
Back to the basics:
No Federal Reserve
No fractional reserve lending
Decrease the size of government
Decrease government spending
Decrease entitlement programs
Get politics out of economics
No fiat currency
Lets put Ron Paul in office to get us there.
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- US Financial Stocks Drop After Oppenheimer Comment On Capital Need
- Money velocity is also a part of the picture.
- Savings is not a “problem,” but a solution.
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