The Libertarian Party of Michigan is fielding of full congressional slate in 2008; 15 candidates for the House of Representatives and Scotty Boman for U.S. Senate. Today, all 16 issued a joint media release condemning the federal bailout of the financial system.
“These problems were caused by the Republican and Democratic politicians in DC and the Federal Reserve!” says Scotty Boman. “They created the government monopolies Fannie Mae and Freddie Mac. They required them to insure no-money-down loans at artificially low rates to people without the ability to pay them back.Â They inflated the money supply, driving down interest rates, and artificially inflating home and asset values.Â Giving the same incompetent government regulators even more control over the market would be insane.”
Leonard Schwartz, US House candidate for Michigan’s 5th District expresses similar outrage.Â “These firms made loans, which is naturally a risky business. They made a lot of money on most of those loans.Â Now they want us to pay for the ones that went bad.Â This situation is the same as if a casino wanted to keep all the wagers they won, but wanted taxpayers to cover all their payouts.”
Daniel Grow, who’s running for Congress in Michigan’s vast 1st District (which includes the entire upper peninsula and a good 1/3 of the sparsley populated northern lower peninsula), says the banking industry is already over-regulated, with the SEC, Sarbanes-Oxley, etc. He fingers the Fed and efforts to expand home-ownership as the impetus for this crisis: “Loose monetary policy and efforts to expand home ownership caused this crisis, and further regulation will not fix anything,” Grow says. “Pumping in more money will at best only temporarily delay necessary adjustments, ultimately bringing a worse crisis, and is a thinly veiled effort to seek short-term political gain.”
“It’s us hard-working Americans who work, save to buy a home, and pay our bills who are being asked to mortgage not only our future, but our children’s and grandchildren’s future to pay for this,” adds CD-2 candidate, Dan Johnson. “We need to stop this now, and we need to elect a Libertarian Congress in November. Otherwise, we risk further federal manipulation of our economy, which will ultimately fail and drive us into a deeper and longer depression than will occur naturally without further manipulation. Should this bailout go through, we will have handed the inmates the keys to the asylum.”
As for an alternative, Scotty Boman offers the following: “The fastest way out of this mess is to free those hard-working Americans who have demonstrated they are responsible with their finances to continue to work hard, invest in our economy, and create jobs. Â We must not tax, regulate and penalize them to bail out those on Wall Street and Main Street who have demonstrated they are not responsible, and will likely do the same thing again, and expect yet another bail out.”