by Joseph Garceau

Created on: September 22, 2008

Once again the US Government has perpetrated one of the biggest frauds in history. Once again it is directed toward the American people. The recent bailouts of Fannie Mae, Freddie Mac, and AIG provides some relief for the troubled financial industry. However, not nearly as much relief as the State will receive by finally being able to cast off the burden and restraints of constitutional government. The government has not only expanded its powers by taking a leading role in the economy, creating monopolies by merging with private businesses, and taxing wealth and redistributing from one group to another, they have convinced us that it is necessary and for "Our own good".

Some of the explanations for all of these bailouts may at first appear legitimate. It is said that "property values will go down if people vacate their homes in droves"? Yes, property values will go down if people have to foreclose on their homes. This is necessary because property prices had been bid up too high in the first place and must come down. Who says we need high home prices anyway? We complain about high food and gas prices and want them to come down. But, for some reason home prices should remain high forever? What about all new homebuyers must they be forced to pay artificially high prices for a new home? Prices should never be fixed arbitrarily high or low but should be decided by the free market.

People who paid such high prices for their homes made an incorrect business decision. They viewed their house as an investment and were counting on real estate prices to keep on increasing. Well, all investments carry with them a certain amount of risk. You can gain or lose money. If home prices had continued to sky rocket and people who owned homes stopped working and just lived off of the equity in their homes should the government have stepped in and confiscated their profits? No, so why should the government step in and absorb their losses?

But if these financial companies go out of business then wont we lose the thousands of jobs that they create? Make no mistake, there will be many people who lose their jobs in the financial industry. But, there will be many more who will lose jobs in all other industries if we allow the government to keep propping the financials up. The Government does not produce anything. The only wealth or capital that the State can provide is that which it confiscates through taxation. So, whatever the State provides to one group it takes from another. All other

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