The reasons why I railed against the TARP program were borne out by Mr. Obama's speech last night. I knew at the inception of the proposed Troubled Asset Relief Program that it would lead to an open ended increase in government spending. And that, of course, their version of a bailout would only lead to the need of further bailouts with increased intensity down the road.

It is important to understand that a government is incapable of a systemic bailout of any sort outside the bounds of lowering the cost of doing business. However, in contrast, all they have succeeded in accomplishing is to: redistribute capital from one sector of the economy to anther through taxation, borrow money for redistribution (a deferred tax with interest) or print it (the hidden tax of inflation).

The kick in the head comes when even after that money is returned to the Treasury the government views it as a slush fund instead of doing the correct thing by reducing public obligations. Therefore, the debt of the country continues to expand as the incursion of the state into the affairs of markets intensifies.

Is it any wonder why the markets are selling off? Higher taxes, increased interest rates and a metastasizing government is not the recipe for rising stock prices.