Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Bush Seeks Advice from Credit Crisis Losers Instead of Winners

Politics / Credit Crisis 2008 Oct 19, 2008 - 05:49 PM GMT

By: Mike_Shedlock

Politics Best Financial Markets Analysis ArticleIn response to the Credit crisis president Bush is gathering up all the people who did not see what was coming, denied what was happening, and then failed to see the implications of what was indeed happening.


Bush Says He'll Host Summit Soon on Financial Crisis .

President George W. Bush said he will host a summit on the global financial crisis in the "near future" and he is confident the world's nations will weather the breakdown in credit markets.

"For this meeting to be a success, we must welcome good ideas from around the world," Bush said as he welcomed French President Nicolas Sarkozy and European Commission President Jose Barroso to Camp David, the presidential retreat in rural Maryland, for dinner and three hours of talks.

The conference agenda will include ideas on how to prevent future crises in a way that preserves the free-market system, Bush said. "It is essential we preserve the foundations of democratic capitalism," he said. He said leaders from both developed and developing nations would be included.

Sarkozy Speech

"We must reform capitalism so that the most efficient system ever created doesn't destroy its own foundations," Sarkozy, 53, said yesterday in a speech to Quebec's National Assembly. Sarkozy represents all 27 nations of the European Union.

Sarkozy and Barraso are pressing Bush for a G8 agenda that includes stiffer regulation and supervision for cross-border banks, a global "early warning" system and an overhaul of the International Monetary Fund. Talks may also encompass tougher regulations on hedge funds, new rules for credit-rating companies, limits on executive pay and changing the treatment of tax havens such as the Cayman Islands and Monaco.

Capitalism Reformed To Death

The problem with capitalism is that it has been reformed to death already. Now we see the Orwellian concept of putting in place a Brave New World To "Preserve" Free Markets .

It is a serious mistake to think we need to take over the free markets to save them. I have a better idea: why not let the free market work? Before one can fix anything one must first understand what the problem is.

The Problem

  • The Fed
  • Fractional Reserve Lending
  • Runaway Congressional Spending

Summit of Winners

Instead of holding a summit of losers, why not hold a summit for those who saw the mess coming and are far more likely to know what to do than those who did not see this mess coming.

There is one more gotcha to the summit of winners ideas. That problem is that a few of the people that did indeed see this crisis coming are proposing the same failed Keynesian policies that brought about this crisis in the first place.

Krugman and Roubini need to be excluded from the summit of winners.

Ron Paul

At the top of my list of those who understand what the problem is and also what to do about it is Congressman Ron Paul . There are simply too many relevant articles by Ron Paul to list one of them as a highlight.

Lew Rockwell has a nice collection called The Ron Paul File that is another good starting point.

Marc Faber




Marc Faber is second on my Winners List.

"The best thing to do is let the crisis burn itself out even if it means pain for some people. The problem is leverage, and the biggest hedge funds are Fannie Mae and Freddie Mac with leverage of 150-1, under the eyes of Congress and the SEC. Nobody did anything about it and then people go ***** about the short sellers. ... And who supplies the leverage into the system? It's called the Federal Reserve board!"

Peter Schiff

I have had and still have my differences with Peter Schiff as noted in Not Your Father's Deflation: Rebuttal and Peter Schiff Replies to Deflation Rebuttal but with the exception of an short and silly reference to Zimbabwe this is an excellent video.



In spite of my differences with Schiff on inflation vs. deflation in the near future, I nominate Peter Schiff to my team of winners for what to do about this problem.

Frank Shostak

I also nominate Frank Shostak to my team of winners. Please consider this audio with Austrian Economist Frank Shostak on Mises.

Others

If you saw this crisis coming, understand that it was the Fed, the SEC, and fractional reserve lending that caused this mess (as opposed to a lack of regulation), and recognize that the best thing to do in the immediate future is nothing, then add yourself to the winners list.

In terms of what to do about the current crisis my proposed winners conference could be concluded with one word "Nothing".

However, it will take a plan and a timeframe to abolish the Fed, abolish fractional reserve lending, and return the world to a system of sound currencies backed by hard assets. I do not think that can happen overnight. How to accomplish that mission is what the economic conference should be about.

Instead, I fear we are going to see a conference of losers, sponsored by a loser, with losing solutions to the problem.

By Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com

Click Here To Scroll Thru My Recent Post List

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management . Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.

Visit Sitka Pacific's Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

I do weekly podcasts every Thursday on HoweStreet and a brief 7 minute segment on Saturday on CKNW AM 980 in Vancouver.

When not writing about stocks or the economy I spends a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com .

© 2008 Mike Shedlock, All Rights Reserved

Mike Shedlock Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in