What an idiot this guy, Spitzer, is. Governor Spitzer was interviewed on CNBC this morning. The Liberal NY drivel that oozes out of this guy’s mouth is amazing.
He took about 5 minutes to essentially say that the muni bond market issue is due to a failure of follow-through by regulators leading up to the residential housing mortgage disaster. A “virus” has now spread from it into the realm of municipal bonding. So, he blames, get this, Ayn Rand (whom he can’t seem to bring himself to actually pronounce her name correctly, using “Ann” Rand) and her revulsion of regulation in general, Alan Greenspan, and a broad brushed blame game against the Bush Administration (clearly a transparent piece of the upcoming democrat presidential and congressional campaign season)….
Now, you’ll get little support for the Bushy’s from me, as I actually think they did have a hand in furthering the tone of a “home-ownership society.” But that society they envisioned, and essentially have gotten, wasn’t premised on the free market. Rather, it was based and premised upon a highly interventionist federal government – particularly in the realm of currency and interest rate manipulation. True, the Fed called those shots but the Fed has no audits or oversight and is essentially working on behalf of both itself and the government. It is government itself who is to blame here, so for Spitzer to argue that the problems New York faces in regards to muni bonding are due to a lack of oversight by regulators, who themselves represent the very system that brought us to this lending mess, is utterly inane – his thesis is severely and profoundly flawed. Regulators, not regulation or government intervention, are to blame according to Spitzer. So, his conclusion is that more of what is at the core of out problems is needed. More regulations, whips on the backs of regulators to implement and enforce those regulations, are the cure. Folks, if you thought we already had a nanny state just hold on to your caps – Obama or Hillary, coupled with total donkey control of Congress, aided and abetted by the likes of this bone headed Governor – because you ain’t seen nothin yet…
What Governor Spitzer would never admit, but is clearly a fact in this matter, is that much of this current reflection of interventionism and regulation actually started in the Clinton Administration with Henry Cisneros who sat on the board of Country Wide when the wheels of change in lending practices started rolling. But that fact simply misses the larger and salient point that it is Ayn (pronounced, Mr. Spitzer, “eye-N”) Rand’s ideas which are precisely correct, and had we had an asset backed currency and far less regulation none of this would have occurred in the first place! Greenspan supported a gold standard back in the day, but he can hardly now be blamed, in utter hind-sight, for not unilaterally taking us back to one. This, again, is simply convolution hardly to be matched by Mr. Spitzer. Typical of his ilk, Spitzer now says he and others had warned of an impending lending mess due to the policies set forth by the evil capitalists. Well, what’s new with that? Spitzer and his ilk are on record opposing EVERYTHING about free market capitalism and so when our interventionist based system fails, as it will due to those of his mindset who demand controls and regulations, he and his intellectual misfits cry that it is capitalism and its defenders who are to blame. That not enough controls are in place to control the controllers…. just consider that one for a minute because that is precisely the point little Elliot made today.
You cannot argue that a lack of oversight by regulators is to blame for a meltdown in banking due to regulations designed to oversee a banking system premised upon the periodic creation of money out of thin air. Worse yet, to argue that an economic philosopher who’s intellectual abilities make Spitzer look like a junk yard dog, are wrong-headed when applied to an economy based on the exact antithesis of her economics is simply a fraud – which, by the end of the interview of Spitzer, was exactly apparent.
Some call him Governor, I would call him an absolute idiot with zero understanding of free market capitalism.