Moral Hazard
February 20th, 2009I’ve spent a lot of time thinking about what to say about this whole mess. I just didn’t know where to begin. Should I tell people what idiots they are for repeatedly voting all these treacherous Democrats and Republicans into office again and again? Or maybe try to explain the massive inflation that has been and will continue to happen as a result of the insane policy of eternal deficits, ever growing federal debt, and ever expanding money supply? But that would be a lot of work, and today I found the perfect little snippet that just sums it all up perfectly. A reader writes in to the 5 Minute Forecast:
“I worked hard,” says a reader, adding to the housing bailout debate, “and had to start over from scratch 23 years ago when I lost all but my shirt, pants and children in a divorce. I always searched for bargains and wore clothing found at garage sales. I paid my credit card bill on time every month to avoid interest charges. I finally bought a home and was able to pay it off in approximately 12 years by loading up my payments by denying myself the new cars, vacations and other luxuries that I saw others around me enjoying. I changed my own oil under my leaky, drippy old car and put off making my home more comfortable with improvements. I finally obtained the prize last year when I paid off the mortgage and felt so good being responsible and doing the right thing.
“The joke was on me, because now my government has signed my name onto a contract to help pay for the mortgages of all of those people that I saw driving around in the new cars and enjoying their hot tub every night in their great big beautiful homes. I am glad that I bought gold along the way so at least I can eat in my broken-down paid-off shack.”
