The United States of China was Close

Michelle Malkin does a ton of real good stuff but she is a market and economic illiterate spouting off about something she knows zero about today. Zero. She's never played any market in her life and she, like dozens of people who spout off on the internet, is totally full of shit today. I'd point out that for all the bricks still hurled at FDR and his New Deal the fact is he walked into a banking system that was seeing thirty bank failures per month WITH NO FDIC to insure savers who lost 100% of their bank accounts. He walked into a stock market that was simply a band of swindlers doing everything you can think of and he passed the Securities laws of 1933 and '34 which restored confidence in the integrity of the stock market (not the futures markets). In short FDR saved capitalism, albeit in an altered form. We all wish that the government didn't step into this current one, all except those who have already lost almost everything and who would have lost everything had any more banks gone under. The collapse of the real estate market is akin to the bank failures of the 30s when nobody had FDIC protection. The loss in home values is permanent; the money is gone and there is no FDIC for real estate. You also need to keep in mind that foreigners own our debt, not us. We'd have been the United States of China had the Feds not intervened this weekend. Try going to an ATM on Monday and finding out that it's closed. We aren't out of the woods yet but we are in a jungle clearing. You can bet the Democrats will throw every entitlement possible at this solution, and it may therefore blow up. In sum, if you see your daughter drowning in the ocean you don't go around screaming for a life guard who taught her to swim, you just dive in the water and save her. You deal with her swimming teacher later.

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