This idea of government intervention has capitalists divided over the soundness of government bailout. Those against the bailouts argue that it has been government intervention of free markets that has caused the crisis and the problems won’t be solved by more of the same. Those arguing for the bailouts contend that in the absence of government intervention, economies will grind themselves into oblivion.
These two sides of the heated debate are well represented by Peter Schiff and Steven Leeb, both presidents of capital management companies and authors who have predicted the coming crisis long before but are prescribing very different solutions.
Schiff and Leeb have been pit against each other since last year at critical junctures during the crisis. The three videos below show the two debating right after (in order): (a) the bank bailout proposed by Paulson in September 2008, (b) the bailout of the automakers in December 2008, and most recently (c) the unveiling of the Obama stimulus package in January 2009.
The two make passionate arguments for their side, and it isn’t an easy question to say who of the two is correct. Recently since the bailouts have begun, stock markets and the US dollar have recovered slightly but that recovery seems to be waning. Checkout the debate and see who you agree with.
After The Bank Bailout ( September 2008 )
After The Auto Bailout ( December 2008 )
After The Obama Stimulus Package ( January 2009 )