It is utterly ridiculous, isn't it? Europe, the bastion of socialism, is now engaged in reducing the size of their welfare state. And here in the US, formerly known as the bastion of free markets, we are busy creating more socialism and implementing Keynesian economic theories. To be sure, if you add up the total in bailouts, QE, and ZIRP, it is primarily socialism in the brand of socializing private losses from our wealthy citizens, but it is socialism nonetheless. Then a smaller, but still significant portion of the oncoming tide of socialism is being spent on the masses, including healthcare, medicare, medicaid, social security, endless unemployment benefits, etc.
In short, our country's government leaders no longer believe in free markets and the free market's ability to wash out the excesses of too much risk taking. Instead, they put the bandaids on it, so that Americans don't feel the pain immediately. It's killing this country's spirit, it's economy, and ultimately it's culture of self-reliance.
Stock markets will be sure to follow these fundamentals. |
