The Virtue of Selfishness: Defending Ayn Rand in Tough Times

Cadillac likes to pick on me and instigated another fight. This time he asked me to defend Ayn Rand style deregulation in light of the times. Here goes.

Every individual is responsible for their personal livelihood. The strong prosper, the weak fail. Government must stand aside for the will of its people.

I am not only responsible for myself but also for where I place my money. If I choose to place my money with an entity that is irresponsible and that entity subsequently fails, I deserve to fail with it because I am the bank’s regulator.

Come again, you say? I’m saying banks can’t fail unless we give them money and then turn a blind eye to where it's going. If my bank begins lending a neighbor money at 14 times his salary to buy a house, I should be asking hard questions or moving my money.

Some banks saw the fiscal irresponsibility of the housing bubble and largely eschewed such poor lending practices (Wells Fargo). Those good banks should benefit from relatively prudent money management while the spendthrifts (Bank of America, Citi) should fail along with all who supported them. (www.ajc.com/business/content/printedition/2008/08/22/wellsfargo.html)

Individuals are responsible for regulating banks through collective scrutiny and common sense not tainted by "irrational exhuberance" followed by "helicopter drops" of cash (...thanks Alan, Ben).

And a “bailout” in any form would be facially offensive to Rand. Why? Well, what are we doing with the bailout money right now? Are we supporting the good banks like Wells Fargo so that the banking system arises anew through strength, not greed and irresponsibility? Of course not, let's instead support the weakest, most irresponsible (Bank of America, Citi) so they can buy their friends at Merrill Lynch and we can have a fresh crisis all over again in a few decades.

I believe Ayn Rand would say irresponsible lending practices, not only by banks to individuals, but more importantly by individuals to banks, caused the current crisis. The irresponsible entities on both sides should simply fail permitting better banks in our country to rise strongly and facilitate a more lasting economic recovery where true regulation is guided by citizens, strength, and common sense and not by a lobbyist-infested government. --Schlitz