Sarah Palin speaks! Some thoughts on her speech in Hong Kong
So Sarah Palin gave her big speech in Hong Kong. She talked about eliminating cap gains and estate taxes, giving people tax breaks to buy their own health insurance, and took a few shots at the Fed. That section was particularly interesting. (A bit of video here.) Here is the WSJ’s take:
“How can we discuss reform without addressing the government policies at the root of the problems? The root of the collapse? And how can we think that setting up the Fed as the monitor of systemic risk in the financial sector will result in meaningful reform?” she said. “The words ‘fox’ and ‘henhouse’ come to mind. The Fed’s decisions helped create the bubble. Look at the root cause of most asset bubbles, and you’ll see the Fed somewhere in the background.”
“Lack of government wasn’t the problem, government policies were the problem. The marketplace didn’t fail. It became exactly as common sense would expect it to,” she said. “The government ordered the loosening of lending standards. The Federal Reserve kept interest rates low. The government forced lending institutions to give loans to people who as I say, couldn’t afford them. Speculators spotted new investment vehicles, jumped on board and rating agencies underestimated risks. So many to be blamed on so many different levels, but the fact remains that these people were responding to a market solution created by government policies that ran contrary to common sense,” she said.
Me: I will alsopredict that she’ll also come out strong against TARP, which may be a big dividing line among 2012 candidates.