Artificial Price Markets

One of the numerous accomplishments of Obama's "cartoon characters" is to have lain the ground work for the creation of an artificial price market. In essence, a potential government owned mortgage company/bank Vi's a Vi's Citi Group opens the door for the government to own as much as 40% of that company. Once that has been completed, the "majority stockholder" (government) then has the power to put into place a "puppet" of the current thinking. By doing so, this effectively stifles competition from other banks due to having a socialist agenda directed management. In this case, the majority stockholder demands specific downward or upward changes in pricing direction. Of course, other banks or mortgage companies may attempt to keep track, but will fall by the wayside and voila competition soon ceases to exist. In effect, a monopoly rises from the ashes of fallen competition and everyone is painfully aware of the ramifications of that monopoly. A case in point is the railroad tycoon, George Stevens of the nineteenth century. Considered the father of American railroads, he amassed considerable wealth building and controlling the first railroad system (a monopoly). This could be potentially the same for our current form of mortgage banking institutions. As more banks fail, competition in that market dwindles and so does the ability to create price competition, the tool which permits ideas and technology to flourish.


Another form of price control is the process by which the government subsidizes our dairy industry in order to maintain specific consumer price levels. As a dairy farmer has the ability to produce in excess of marketable goods, the government, through dairy subsidies, pays that same farmer to produce fewer marketable goods. Thus, the market price of a dairy commodity is kept at a specific level. If market conditions worsen and the farmer is not able to produce a previously expected level, the government subsidy acts as a financial cushion and the farmer's profit margin is somewhat maintained. However, market price fluctuates only slightly upward due to an artificial control mechanism being placed on the market. There are enumerable instances of product pricing being controlled in this same manner.

While there remains a suitable quantity of competition in any field, that competition is limited in those areas by the artificial means of controlling it--the government's price subsidy. And once again, the consumer is at the mercy of those artificially induced pricing schemes. The saga continues....