Freddie Fannie et al

(sorry I have been away. had time for awhile but nothing good to write about.)

Fed Chairman Ben Bernanke

The latest banking crisis is a good moment however, to point things out.

When Senator Chucky wrote his letter and caused the third largest bank failure in history, I think liberals everywhere took a moment to pause. And smile.

Once again, it was an opportunity to point out the failure of the free market and capitalism. They don’t like it very much, today. The average Democrat. It’s inconvenient. It doesnt respond to threats or intimidation. It only responds to what the people want. Back to that later.

Granted, that has its downside. We might get what we asked for and it doesn’t feel so good afterwards, but that IS what we wanted.

Banks are a case in point. Now, I work for a firm that services hundreds of small banks. Hundreds. Did you know that there are over 2,400 banks, ballpark, in the United States? I didn’t. I had no idea. B of A, WaMu, Wells Fargo, Chase… I could name a bunch. But 2,400. Most are small, community banks that service local areas. Now I can name over a hundred. Community Bank of Orange City, People Bank of LaFollette, and on and on…

I can tell you that NONE of the small banks are the LEAST bit fazed by the events unfolding. They are building their websites and ramping up their online banking features as fast as ever. They are capitalized differently, their risks minimized… they have less to lose but less makes you more cautious. I dont understand it all, but I know they are not panicked. And neither are THEIR customers.

These George Bailey institutions deserve a moments thought. We, as a society, choose to put MOST of our money into large banking institutions, and set ourselves up for this very problem to occur. And when we do, (excuse me, time to get out my sack of liberal Non Sequiturs) … out come the doomsayers who want the entire country to be run like the DMV.

“Either you nationalize the banks now or you nationalize the mortgages. When you have a systemic financial crisis, there is always a government bailout.”


“When it works, nothing is better at creating an endless variety of reality TV shows than free market capitalism. But when it doesn’t, it isn’t just that extra brand of clear dishwashing liquid that goes away. Businesses fold. Banks foreclose. People starve. And no one can stop it.”

No matter where I began to look, the chattering mob was nipping at the heels of the engine of America. :We don’t want risk! We don’t want loss! We don’t want challenge! We want everything as it is and for it never to be anything else!

Oh really? People starve? In America? Prove it. Show me a family in poverty with two color televisions and a car outside that cant afford a Big Mac. People starve in America because they have other priorities and government will do nothing to help THAT. What they have goes in their arm or up their nose and then they starve.

Nowhere do I hear the voice of “Gee, it happened before and it keeps happening. Why don’t we stop bailing them out?” See, if the banks KNEW they weren’t going to be bailed out, they wouldn’t feel free to engage in risky behavior. And those who demanded loans be made to people who couldn’t pay them back would be told to shut up. And the future would be remarkably stabler without a mattress to fall on. Instead, the insanity of liberalism has been upped a notch from “Do the same thing over and over again! to: Do the same thing, only do MORE of it this time!”

I’m taking my money out of US Bank today, by the way, and putting it in my local credit union.

About Terry Crowley