Mama Grizzly Ferociously Defends Free Markets
After President Obama's declaration last week that:
I have always been a strong believer in the power of the free market.
…I'm taking everything I hear from politicians on this topic with a Bloomberg-sized helping of salt. But, for what it's worth, here's Mama Grizzly herself telling some Hong Kong businessmen what's what on the financial crisis from the Palin perspective:
Conservatives need to defend the free market system and explain what really caused last year's collapse. According to one version of the story, America's economic woes were caused by a lack of government intervention and regulation and therefore the only way to fix the problem, because, of course, every problem can be fixed by a politician, is for more bureaucracy to impose itself further, deeper, forcing itself deeper into the private sector.
I think that's simply wrong. We got into this mess because of government interference in the first place. The mortgage crisis that led to the collapse of the financial market, it was rooted in a good-natured, but wrongheaded, desire to increase home ownership among those who couldn't yet afford to own a home. In so many cases, politicians on the right and the left, they wanted to take credit for an increase in home ownership among those with lower incomes. But the rules of the marketplace are not adaptable to the mere whims of politicians….
Lack of government wasn't the problem. Government policies were the problem. The marketplace didn't fail. It became exactly as common sense would expect it to. The government ordered the loosening of lending standards. The Federal Reserve kept interest rates low. The government forced lending institutions to give loans to people who, as I say, couldn't afford them. Speculators spotted new investment vehicles, jumped on board and rating agencies underestimated risks.
Relive the Palin moment here.
