Peronistas in the White House

"Yes, that’s right. Barack Obama and his henchmen just handed the United Auto Workers 55 percent of Chrysler’s stock. One of the biggest contributors to the Democratic Party now controls the company they bankrupted. And what about the “secured” bondholders — the investors who accepted lower returns in exchange for the security of knowing they would be first in line to be paid back if something bad happened? The last time I checked, they were offered 29 cents on the dollar."

If you ever want to see first hand how a single person can turn a first world country into a third world basket case, read this. You'll see exactly how transferring power to favored unions while ignoring the rule of law destroys a country.

But more frightening is the prospect of investors sitting on the sidelines waiting to see how the government will act next. We have experience with that too. It was called the Great Depression.

Amity Shlaes describes in detail how Herbert Hoover and Franklin Roosevelt transformed a financial panic into a fifteen year depression by "experimenting" with various economic solutions. Investors responded by sitting out the whole mess out, and the stock market didn't reach re-crash levels for a full twenty-five years. Can you imagine the Dow at 14,000 in 2034? Some fix.

I, for one, am stunned by the political corruption on display in Washington. As now we have no independent press to put the breaks on the massive power grab, one can only hope that masses of voters will eventually wake up to the mess that is being created. But four more years of this will surely impoverish millions along the way.

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