Proof.

Proof.

By

Mitchell Gray

Wow! A free market solution to the economic crisis that doesn’t cost taxpayers a dime! Citigroup announced on Tuesday, November 11, 2008 that they will reach out to 500,000 homeowners who face foreclosure offering up a program designed to keep them in their homes and the payments coming in. According to Forbes.com Citigroup made the decision to be proactive by reaching out to half a million homeowners who would most likely be the ones to fall behind on their mortgages. The program is an attempt to protect $20 billion in mortgages that Citi fully owns. Citi will proactively modify the loans by reducing the interest rates, extend the terms or forgive the principle. At first the program will be applied only to those with first mortgages held by Citigroup. The company plans to later expand it to second and third mortgages. The reason for the wait is that when it is a second or third mortgage they have to work with the holders of the first mortgage before and modifications can be made to the loans.

So here we have a company that seems to understand free market principles! Instead of begging the Treasury to buy up these loans when they go bad Citigroup is taking the morally and economically sound attitude that they will attack the problem before it gets out of hand. We are watching the free market do what the free market should be allowed to do. This company is being responsible and taking charge of a situation that could wipe out its capital and assets and plunge the company into bankruptcy like so many others.

While the socialist try to tell us that only the government can fix the current financial crisis we have here irrefutable proof that, when left to its own devises, the market will find ways to deal with any and all problems. The solutions to the problem does not come from inflating the money supply or bailing out big corporations. The solution comes from letting businesses do what businesses do. They can either adapt and change or they can go bankrupt. The course of action the Fed and the Treasury are taking will lead us to economic ruin in the near future. You cannot add trillions of new dollars to the economy if there is no capital acquisition to back them. All of that paper will come back to bite us in the ass very soon. This little recession we have now will pale in comparison to the major depression we will face very soon.

AIG should have collapsed, gone into bankruptcy and died the death it should have. Ford and GM should do the same. All of the banks that have received money from the taxpayers ought to have faced the harsh medicine the market offers those who deal in bad debts. Citigroup seems to get it. If everyone had acted like them we wouldn’t be in the mess we are in now and we wouldn’t have to stare down the face of the worst depression in mans history which will soon befall us.