Banksters and Tar Babies

I have been plagued by a tar baby for quite some time. What is a tar baby? According to Wikipedia:

The Tar-Baby is a fictional character in the second of the Uncle Remus stories published in 1881; it is a doll made of tar and turpentine used to entrap Br’er Rabbit. The more that Br’er Rabbit fights the Tar-Baby, the more entangled he becomes. In modern usage, “tar baby” refers to any “sticky situation” that is only aggravated by additional contact.

I have published articles related to Canadian economic and political issues for almost a full year now. My positions are contrarian. Because of this, they are often deemed controversial by certain readers. This generates criticism of my positions. I accept this.

Occasionally, I am contacted by crazies who call me things like a “beanhead jerk-off” and tell me to go back to Canada. I safely ignore these people. Other times, my critics will present their arguments respectfully. I do my best to respond to these people via my website. This helps generate traffic and content for existing and potential readers.

Then there is the issue of the tar baby. According to Gary North, “Tar babies are unteachable people who must have the last word. Occasionally they are smart, but not usually.” This is true of my tar baby. Today, commenting on my latest article about Canada’s student loan bubble, he has written:

What about the role of the banks in this? You criticize politicians, universities and students, but not those who ultimately profit from this whole arrangement.

A simple Google search reveals that federal student loans have been directly financed through the government of Canada since the year 2000. From the website of Human Resources and Skills Development Canada:

On July 31, 2000, the risk-shared arrangement between the Government of Canada and participating financial institutions came to an end. The Government of Canada now directly finances all new loans issued on or after August 1, 2000. The administration of Canada Student Loans has become the responsibility of the National Student Loans Service Centre (NSLSC).

Incidentally, blaming the business cycle on greedy banksters is equivalent to blaming plane crashes on gravity. If the government flies the plane into a mountain, the plane is going down regardless of Newtonian mechanics. Not to mention, banks did not exactly fare well once the U.S. housing bubble collapsed.

Rest assured, none of this will convince my tar baby. If only I had the willpower to permanently ignore him.



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  • About Gregory Cummings

    Gregory Cummings writes about Canadian monetary and economic policy. His writing has been featured at the Ludwig von Mises Institute of Canada and the Ludwig von Mises Institute's Mises Daily publication. Read more.

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