There is good government and bad government.
The American experiment was a success until recently because the Founders had created a system that limited governance to a few areas where government does a good job.
There is good business and bad business. For example, the protection racket is a business. You pay me money, and I protect you from my friend Biff who breaks legs.
When we look at our financial system, we see that terrible things are going on. We simply have to be able to have a conversation about what distinguishes good and bad business models.
The Marxian left does its damage by encouraging the development of bad business models that attack and destroy good businesses. Marx's goal in defining Capitalism was to create a paradox-ridden top-heavy finance system that openly oppressed the people.
Marx, the father of Capitalism, created a bastard child that was doomed to collapse into ruin.
Foolish Marxists believe a socialist utopia will miraculously emerge from the ashes. They encourage and active work on developing destructive businesses. Notably, Joseph Kennedy made billions through stock manipulation, and George Soros made billions through currency manipulation.
The derivatives that crashed the economy came directly from progressive universities into Wall Street.
Nimrods on the right aid this effort by being unwilling acknowledge that many businesses today (especially in the financial sector) are doing a great deal of harm.
Our business world is dominated by corrupt financial firms that take on huge leveraged positions in efforts to dominate the market. These efforts systematically drive out good companies with easy money.
There is something wrong with our financial system.
Part of the problem is debt financing. The equity financing discussed by Adam Smith is a positive space.
Debt financing is a strange negative space.
When you take out a thousand dollar loan, that loan is debit on your accounts, but it is an asset on the bank's books. If you took out a million dollar loan, your books look would look horrible, but the bank's books would look great.
Debt begets debt.
Let's say a friend owed you ten thousand dollars. You might just borrow against that asset. Your creditor might borrow against your loan and so on.
Because a debt based financial system works in a negative space, it lends itself to horrific abuse.
Our progressive universities teach business leaders that they must dominate or perish. The business leaders go into the market and take out absurd debt positions to dominate a market.
As bad money chases out good, these business drones will flood the market with easy money. However, the majority of them fail ... bringing down the good businesses that use equity financing.
To recover from the collapse, free market loving Americans must be willing to discuss the difference between destructive and constructive financial models.
I love the discussion about whether or not Bain Capital was a vulture or venture capital firm.
What is good and what is bad venture capital?
There is clearly something wrong with the current venture capital system as it gives a disproportionate amount of the reward to the financiers, when it is the innovators that actually created the wealth.
The enemies of the free market have engaged in discussions on how to corrupt the financial system
Did I mention, Karl Marx was the father of Capitalism?
Unfortunately, blathering fools, like Sean Hannity, who defend the Marx's version of capitalism bring us all down by preventing a much needed discussion of good versus bad business models.
We need to have a discussion of good versus bad business models, even if the discussion doesn't fit within the political objectives of Mr. Hannity.
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