I often observe human beings who are barely able to contain their pleasure at any sign of trouble that signals they may turn out to be right. Here’s an example many will recognize: the thinly and poorly veiled glee felt and expressed by many on the left with each new report of things going south in Iraq. Now, I certainly think we should get our asses out of there, immediately, but if that’s not going to happen, then I certainly wish for a success — however that may generally be measured.
Many libertarians aren’t immune from such base emotions, it seems. And if I’m honest, I’d have to admit that I’ve fallen for the "serves ’em right" and "that’ll teach ’em" immaturity, at times. The sad reality is that things are in motion, politically, that could ignite civil wars and worse; and regardless the eventual outcome, it’s nothing to cheer. And neither is economic collapse, simply because you don’t like the Fed, its credit bubble, and resulting inflation.
Here’s what I mean. These are all from the LewRockwell Blog over the last few days.
Lew Rockwell (Recession…or Worse?) – As the Greenspan-Bernanke-Bush disaster unfolds, follow the trainwreck with Mises.org’s charts.
Max Raskin (Fed Cuts Discount Rate) – If they are setting out to do everything in their power to make this
situation worse, then they’d be doing exactly what they are doing.
Lew Rockwell (Bank Run!) – Countrywide is probably going down, no matter what the Fed or the FDIC
or any other federal entity does. Even the leviathan can’t repeal
Karen DeCoster (Countrywide: Is it on Your Side?) – Nothing like a good, old-fashioned bank run. […] Countrywide is toast. Someone pass the bacon, please. […] If you are really looking for a blood-on-the-scene train wreck...
Perhaps you don’t detect the underlying sense of "see, I told you so" that I do. That’s fine. Your mileage may vary.
Presently, my guesstimate is that the market will be just fine and the sub-prime "mess" will sort itself out. That’s what markets are designed to do (debt is an asset that is traded on world markets; do you realize that?). It’s not just that capital flows to those most adept with it. So does risk. Losses, sell offs, and panics only create opportunities for those best able to manage their fear and their greed and best at keeping themselves from being fooled.