Nov

14

The Free Market Strikes Back

November 14, 2008 |

This Wall Street Journal article about rising interest rates being paid to depositors as banks compete for cash is evidence of the free market attempting to correct itself in the wake of Congressional manipulation of the mortgage market.

Banks Wage Rate War for Deposits

Consumers Benefit as Institutions Move to Shore Up Funds, but Profit Margins Suffer.

[LINK]

The federal government and especially the Socialist-Progressive-Democrats will not tolerate these free market forces playing out. If banks have to pay more for the cash being deposited by the commoners (that’s us), they will in turn need to raise the rates they charge for lending cash.

That makes homes which people can’t afford even more unaffordable, and we all know that the federal government is in business to make sure that there are cheap loans available to people who can’t afford them.

I predict that the Socialist federal government will inject yet another trillion dollars (freshly printed) into the mortgage market. Then banks will not be subject to the rules of free markets, and they won’t have to compete for your deposits. Too bad that the nearly worthless cash will drive up inflation and thus home prices.

The Socialists in our government never learn.


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