Freedom News Blitz

NEW YORK – People are calling John P. McMurray a hero. Now, you may not know who he is or why he’s a hero.

John P. McMurray was the chief risk officer of Countrywide Financial Corp, a company that is one of the villains of the subprime mortgage crisis. Of course, the number one villain is the creator of all the destructive inflationary money, the Federal Reserve System.

You’re probably wondering how someone from Countrywide can possibly gain hero status. Surprisingly, McMurray continually warned his bosses about the dangerous game of risk they were playing. As seems to be the rule instead of the exception in the days of faulty economic theory, they ignored him, denied the reality of sound economics and continued to believe in quack money illusions.

Reality finally showed its stern look of disapproval. The U.S. Security and Exchange Commission filed a lawsuit against Countrywide’s co-founder Angelo Mozilo charging him with securities fraud and insider trading. He made a whopping $139 million dollars.

They also charged Countrywide’s former president David Sambol and former Chief financial officer Eric Sieracki with fraud.

Incredibly, the complaint filed by the SEC mentions McMurray’s status as a watchdog 31 times. My hat goes off to John P. McMurray as a man of integrity and high values.

For more information read Reuter’s marvelous article: Countrywide exec often warned about mortgage risks/

Illusions

Let’s face it. Economic illusions are running amuck. Sound economic reasoning is difficult to come by. Is it any wonder our economy is on the verge of collapse?

Ponder this illusion. The government creates wealth.

The truth of the matter is the government doesn’t create any wealth; it redistributes it through inflation and taxation. To the superficial observer, the government appears altruistic when it buys mortgages and injects capital into banks to alleviate the hardships of homeowners and banks.

Obviously, the Countrywide fiasco demonstrates what happens when the government attempts to create wealth through that engine of inflation, the Federal Reserve System.

Here’s another illusion to think about. For some reason, people believed that this time things were different. They readily accepted the economic quackery establishment economists threw their way, not realizing only the privileged class of political and financial leaders benefit from the chicanery.

I hope you didn’t fall for these illusions. Certainly, your pocketbook is much thinner if you allowed the establishment to hoodwink you with blatantly false economic theories.

Denying Reality

Do you wonder why many people completely deny reality? Are you appalled by all the destructive economic theories that pass as truth? Amazingly, our “beloved” political and financial leaders believe they can cure our economic woes with the same snake oil that caused the crisis.

Really, are these people just plain ignorant or are they hoping we possess the intelligence JethroTull describes in their great song “Thick as a Brick?”

Here are the facts. “The New Economics” is a gross violation of sound economic reasoning. It is nothing but economic quackery. If it didn’t cause such tragic results, we might laugh it off as the delusions of the mentally ill.

Truthfully, it’s a rehash of the faulty economics that great economists such as Ludwig von Mises, Murray Rothbard, F.A. Hayek and Henry Hazlitt exploded many times over.

However, you know how it is. Myths and illusions die hard. I believe Thomas Edison said “Thinking is the hardest chore there is—that’s why so few indulge in it. Apparently, denying reality gives the non-thinker much comfort—that is until the piper demands payment.

Robert A. Meyer
http://libertarianway.com/