Big Bad Bureaucratic Bust: Government Intervention in Housing Caused Financial Crisis and Economic Recession–Progressive Government Failure!

Posted on June 2, 2009. Filed under: Blogroll, Books, Communications, Economics, Employment, Energy, Homes, Immigration, Investments, Law, liberty, Life, Links, People, Philosophy, Politics, Quotations, Rants, Raves, Regulations, Talk Radio, Technology, Video | Tags: , , , , , , , , , , , , , , , , |



“The worst evils which mankind has ever had to endure were inflicted by bad governments.” 

~Ludwig von Mises 


“Who can seriously doubt that the power which a millionaire, who may be my employer, has over me is very much less than that which the smallest bureaucrat possesses who wields the coercive power of the state and on whose discretion it depends how I am allowed to live and work?” 

~Friedrich August von Hayek


“Hell hath no fury like a bureaucrat scorned.”


~Milton Friedman


Two people that I read and listen to are economist Thomas Sowell and investment portfolio manager Peter Schiff.

Both share my own classical liberalism philosophy and interest in economics as articulated in the writings of Ludwig von Mises, Friedrich A. Hayek, and Milton Friedman.

For background information I recommend viewing the videos from the late Bill Seidman, Marshall Black interviewed by Bill Moyers and several professors at the Wharton School of the University of Pennsylvania. 

Economist Dr. Thomas Sowell on the financial crisis


Glenn Beck & Thomas Sowell, Housing Boom and Bust 06 01 09


The Housing Boom & Bust


Thomas Sowell – Obama’s Vision


Thomas Sowell 1 of 8 People Late House Payment or in Foreclosure


Peter Schiff’s Predictions (2002-2009)

“…This is a set of clips of Peter Schiff from 2002 – 2009. Peter Schiff has been the dominant voice for the American people during this financial crisis. Going up against corporate shills in the media, his predictions have come true about the economy. You should listen to this man. …”


Why the Meltdown Should Have Surprised No One


Nov 2006 Peter Schiff Mortgage Bankers Speech Part 1 of 8


Nov 2006 Peter Schiff Mortgage Bankers Speech Part 2 of 8


Nov 2006 Peter Schiff Mortgage Bankers Speech Part 3 of 8


Nov 2006 Peter Schiff Mortgage Bankers Speech Part 4 of 8


Nov 2006 Peter Schiff Mortgage Bankers Speech Part 5 of 8


Nov 2006 Peter Schiff Mortgage Bankers Speech Part 6 of 8


Nov 2006 Peter Schiff Mortgage Bankers Speech Part 7 of 8


Nov 2006 Peter Schiff Mortgage Bankers Speech Part 8 of 8


Peter Schiff On The USA Financial Market Crisis–June 2, 2009


“Liberalism and capitalism address themselves to the cool, well-balanced mind. They proceed by strict logic, eliminating any appeal to the emotions. Socialism, on the contrary, works on the emotions, tries to violate logical considerations by rousing a sense of personal interest and to stifle the voice of reason by awakening primitive instincts.”

~Ludwig von Mises

“To act on the belief that we possess the knowledge and the power which enable us to shape the processes of society entirely to our liking, knowledge which in fact we do not possess, is likely to make us do much harm.”

~Friedrich August von Hayek 

“Many people want the government to protect the consumer. A much more urgent problem is to protect the consumer from the government.”

~Milton Friedman



Background Articles and Videos

Thomas Sowell

“…Thomas Sowell (born June 30, 1930), is an American economist, social commentator, and author of dozens of books. He often writes from an economically laissez-faire perspective. He is currently a senior fellow of the Hoover Institution at Stanford University. In 1990, he won the Francis Boyer Award, presented by the American Enterprise Institute. In 2002 he was awarded the National Humanities Medal for prolific scholarship melding history, economics, and political science. …”

Thomas Sowell and a Conflict of Visions


Thomas Sowell – Bureaucracy


Thomas Sowell – The Vision of the Anointed


Peter Schiff

“…Peter David Schiff (born March 23, 1963)[1] is an American economic commentator, author and licensed stock broker who currently serves as president of Euro Pacific Capital Inc., a fully accredited brokerage firm based in Darien, Connecticut.[2]

Schiff is best known for his bearish views on the United States economy and for having predicted the economic crisis of 2008.[3] He has risen to media prominence following the publication of his book Crash Proof: How to Profit From the Coming Economic Collapse, published in 2007.

Aside from his writings, Schiff maintains a significant media presence, often appearing on American financial news programs on networks such as CNBC, CNN, CNN International, Fox News, Bloomberg TV and Fox Business. Schiff also hosts a live Internet/shortwave radio show called “Wall Street Unspun, which is available in podcast format.”[4]

Schiff is a supporter of the Austrian School of Economics and the Ludwig von Mises Institute[5], and was an economic adviser for Ron Paul’s campaign in the 2008 Republican Party primaries, through which Schiff also expressed support for sound money, limited government, and free market capitalism. …” 

Bill Seidman

“…Lewis William Seidman (April, 29, 1921 – May 13, 2009)[1] was an American economist, financial commentator, and former head of the FDIC.

Born in Grand Rapids, Michigan. His wife was Sally Seidman; they had six children.

Seidman received his undergraduate education at Dartmouth College, his law degree from Harvard University, and his MBA from the University of Michigan’s Ross School of Business. Seidman began working in United States government as an economic adviser to President Gerald Ford from 1974 to 1976, and later in a related capacity to President Ronald Reagan from 1982-1984. In 1985, he became the chairman of the Federal Deposit Insurance Corporation and served until 1991, working extensively during the American savings and loan crisis to restore solvency to the failing savings and loan sector of American banking. He was the first chairman of the related agency, the Resolution Trust Corporation, which was created specifically to address issues arising from the savings and loan crisis, from 1989 until his retirement from active government in 1991.

He worked as a chief financial commentator for the CNBC network, as well as an occasional speaker at various financial conferences worldwide. Seidman also joined SecondMarket, Inc. in December 2008 and served as a senior advisor to the firm.[2] In 2005, he debated former Vice-President Al Gore on economic matters at The Asian Banker Summit in Singapore March 15-17, 2005.[3][4] He spoke at four events in Asia from 2005-2007.[5]

The FDIC office complex in Arlington, VA is named for Seidman.

Seidman was one of the principal founders of Grand Valley State University, helping galvanize local support for the establishment of a public four-year university in West Michigan. [6]

In 1978, Seidman also founded The Washington Campus [7], an executive education organization which began as a consortium of U.S. business schools dedicated to educating business leaders on the public policy process.

Seidman died of natural causes in Albuquerque, New Mexico at the age of 88. …”


 Economic Crisis: Causes & Cures (2 of 7)


Economic Crisis: Causes & Cures (3 of 7)


Economic Crisis: Causes & Cures (4 of 7)


Economic Crisis: Causes & Cures (5 of 7)


Economic Crisis: Causes & Cures (6 of 7)


Economic Crisis: Causes & Cures (7 of 7)

Moyers 1 of 3: Sharing the Blame for the Economic Crisis?


Moyers 2 of 3: Sharing the Blame for the Economic Crisis?


Moyers 3 of 3: Sharing the Blame for the Economic Crisis?



The Liars’ Poker: Economists Explain Why Hints of the Economic Crisis Eluded Them

Martin Feldstein’s Plan (part 1)

Martin Feldstein’s Plan (part 2)

Deconstructing the Subprime Crisis


Jeremy Siegel on the Resilience of American Finance


Franklin Allen on Lessons from the Subprime Crisis


Joseph Gyourko on Fannie, Freddie, and the Housing Bust


Richard Herring on What’s Next for Investment Banks


Wall Street’s Day of Reckoning: The Fannie & Freddie Bailout


Wall Streets Day of Reckoning: Turmoil in the Global Market


Franklin Allen on Past Crises


Richard Herring on Mortgage-backed Securities


Susan Wachter on Securitizations and Deregulation


Todd Sinai on Home Values


Richard Marston on Risk Credit Crisis


Marshall Blume on the Evolving Marketplace


Wharton Faculty Teach-In October 21, 2008



Uncommon Knowledge: The Great Depression with Amity Shlaes


The End

Michael Lewis

“…That’s when Eisman finally got it. Here he’d been making these side bets with Goldman Sachs and Deutsche Bank on the fate of the BBB tranche without fully understanding why those firms were so eager to make the bets. Now he saw. There weren’t enough Americans with shitty credit taking out loans to satisfy investors’ appetite for the end product. The firms used Eisman’s bet to synthesize more of them. Here, then, was the difference between fantasy finance and fantasy football: When a fantasy player drafts Peyton Manning, he doesn’t create a second Peyton Manning to inflate the league’s stats. But when Eisman bought a credit-default swap, he enabled Deutsche Bank to create another bond identical in every respect but one to the original. The only difference was that there was no actual homebuyer or borrower. The only assets backing the bonds were the side bets Eisman and others made with firms like Goldman Sachs. Eisman, in effect, was paying to Goldman the interest on a subprime mortgage. In fact, there was no mortgage at all. “They weren’t satisfied getting lots of unqualified borrowers to borrow money to buy a house they couldn’t afford,” Eisman says. “They were creating them out of whole cloth. One hundred times over! That’s why the losses are so much greater than the loans. But that’s when I realized they needed us to keep the machine running. I was like, This is allowed?” …”



Jim Rogers: They’re Printing So Much Money That Stocks Will Go To 30,000

Monetary Policy By Federal Reserve Will Cause “Double Digit” Inflation

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