Maggie's Farm

Two comments on the financial articles.

Regarding short selling, I have argued from the time the up-tick rule was abolished that (a) short selling is not a "bad" thing because it adds liquidity, (b) the up-tick rule should be maintained because it prevents momentum players from manipulating the market (the how it's done discussion is quite long) and (c) delivery of borrowed shares should be required from institutional investors before short sales can occur (just like retail investors do before a short sale).

This will be more effective than pages of regulations.

Regarding the Great Depression 2 article, Paul is not to be trusted. His objective is to bash Reaganomics. He offers no solutions. He also gripes about collectivism as making things worse (and I agree).

While there may be a depression, it will not be because of unfettered capitalism with insufficient regulation. It will be largely because of government interference in free markets and this includes tax policy.

The federal budget is over $3.1 TRILLION. There is spending problem and that is getting worse. More government will only exacerbate the problem. We need freer markets, less government and more personal responsibility.

We can extend unemployment benefits, but concentrating more economic and political power in Washington will be a disaster.

Congress had to close its cafeteria because it lost $18 million (which is quite an accomplishment given the relatively small group served). Social Security, Medicaid and Medicare are in shambles.

Why will it be different this time? It won't be.

People are full of fear, and, in some cases, it is understandable. However, there is no free lunch. Government comes with the yoke of servitude.