This is a time for some banks to fail, and remaining banks to deal honestly and transparently once again. More regulations will only result in more lies.
by Ron Paul
Inthe midst of highly unpopular bailouts of Wall Street, manyjustifications have been given about why Washington feels the need toact. Some claim that capitalism and the free market are to blame, butwe have not had capitalism. If you compare our financial capital toour aggregate debt, this would be obvious. In the same way, we havenot had a truly free market. The monetarymanipulations of the Federal Reserve, a complex tax code, the many“oversight” agencies and their mountains of regulations show that weare far removed from a free market economy.
Another unsatisfying argument is that certain entities have to be bailed out because of their economic importance. Supposedly, some entities can be so big, so important, that no matter what they do, citizens must perpetually sustain them. Even limitedgovernment has a basic duty to defend against force and fraud. Someargue that force is somehow permissible just because the entityengaging in it is “economically significant.” But one could use thisreasoning to prop up slavery. It could be deemedunfortunate but economically beneficial, and indeed these argumentshave been used historically to deprive people of their liberty. Butslavery should never be tolerated regardless of any economic benefit,just as systemic fraud should not be tolerated. Some banks on WallStreet should fail. Fannie and Freddie should fail. Theyare perpetrating fraud against the people. Yet, government insists onrewarding behavior which should instead be investigated, prosecuted,and punished.