So if the government is stepping in with taxpayer money, why are
they allowing an even WORSE business model to be developed and
executed? The market needs to be free of intervention. Regulations
can and should be put in place to protect the masses, but once
someone decides to ignore the rules, or in the case of our
financial system, go beyond any reasonable man's concept of safe
and sound business practices, they are supposed to be allowed to
fail. If the government is going to use my money, my children's
money, and my grandchildren's money to support the bad decisions
rather than prosecute for breaking laws or ignoring rules, then
they ALSO need to be directing proper, fair, and equitable ways to
execute the use of the taxpayer funds.
Algyros - I don't know if well regulated state control is better
or Free Market. But there is a fallacy that I need to point out. If
there truly was a free market, there would have been no BAC left to
give out any loans or cancel credits. Its valuable assets would
have been auctioned off to the highest bidder long ago at pennies
on the dollar, and some other entity would have taken over its
depositors and customers.
Also if there was a true free market, we probably would have
gone through a very sever deflationary depression where millions
more would have lost their jobs, homes etc. as well as thousands of
financial institutions would have been bankrupt by now and would
have disappeared. We may even have had some substantial social
unrest and possibly literally blood on the streets. But we probably
would have seen some signs of innovation and hope right about
now.
Are we going to avoid any of the pain the way we are going now?
I don't know, and I don't pretend to have the answer. Only time
will tell.
if there had been a Free Market all along there would not
have been the political muscle to have everybody that wants to get
an affordable housing to begin with, regardless if they can afford
it or not. In a Free Market you get what you can afford and not
what you want.The so-called "Free Market" has been using Big
Government to have there cake and eat it too.
What we have is not a Free Market but a Mixed Economy, which
brings out the worst kind and this is the outcome.
if there had been a Free Market all along there would not
have been the political muscle to have everybody that wants to get
an affordable housing to begin with, regardless if they can afford
it or not. In a Free Market you get what you can afford and not
what you want.The so-called "Free Market" has been using Big
Government to have there cake and eat it too.
What we have is not a Free Market but a Mixed Economy, which
brings out the worst kind and this is the outcome.
How about Laissez-fair-Capitalism?
PS:Its the old head trick: Blame the Free Market when there
never was a truly Free Market in the first place, and then what
caused it all is giving us more of it to solve the problem. Sad
thing is that they are getting away with it.
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So if the government is
Just an OT rant
Posted by rgoodwin on 8th of Jul 2009 at 06:07 pm
So if the government is stepping in with taxpayer money, why are they allowing an even WORSE business model to be developed and executed? The market needs to be free of intervention. Regulations can and should be put in place to protect the masses, but once someone decides to ignore the rules, or in the case of our financial system, go beyond any reasonable man's concept of safe and sound business practices, they are supposed to be allowed to fail. If the government is going to use my money, my children's money, and my grandchildren's money to support the bad decisions rather than prosecute for breaking laws or ignoring rules, then they ALSO need to be directing proper, fair, and equitable ways to execute the use of the taxpayer funds.
Agreed. My only point is that
Posted by algyros on 8th of Jul 2009 at 06:13 pm
Agreed.
My only point is that unfettered market forces are no more the answer than pure state control.
Free market or not
Posted by mamaduck on 8th of Jul 2009 at 07:34 pm
Algyros - I don't know if well regulated state control is better or Free Market. But there is a fallacy that I need to point out. If there truly was a free market, there would have been no BAC left to give out any loans or cancel credits. Its valuable assets would have been auctioned off to the highest bidder long ago at pennies on the dollar, and some other entity would have taken over its depositors and customers.
Also if there was a true free market, we probably would have gone through a very sever deflationary depression where millions more would have lost their jobs, homes etc. as well as thousands of financial institutions would have been bankrupt by now and would have disappeared. We may even have had some substantial social unrest and possibly literally blood on the streets. But we probably would have seen some signs of innovation and hope right about now.
Are we going to avoid any of the pain the way we are going now? I don't know, and I don't pretend to have the answer. Only time will tell.
How about laissez fair capitalism?
Posted by erikwil on 8th of Jul 2009 at 10:36 pm
in answer to your "Free Market":
if there had been a Free Market all along there would not have been the political muscle to have everybody that wants to get an affordable housing to begin with, regardless if they can afford it or not. In a Free Market you get what you can afford and not what you want.The so-called "Free Market" has been using Big Government to have there cake and eat it too.
What we have is not a Free Market but a Mixed Economy, which brings out the worst kind and this is the outcome.
How about Laissez-fair-Capitalism?
How about laissez fair capitalism?
Posted by erikwil on 8th of Jul 2009 at 10:46 pm
in answer to your "Free Market":
if there had been a Free Market all along there would not have been the political muscle to have everybody that wants to get an affordable housing to begin with, regardless if they can afford it or not. In a Free Market you get what you can afford and not what you want.The so-called "Free Market" has been using Big Government to have there cake and eat it too.
What we have is not a Free Market but a Mixed Economy, which brings out the worst kind and this is the outcome.
How about Laissez-fair-Capitalism?
PS:Its the old head trick: Blame the Free Market when there never was a truly Free Market in the first place, and then what caused it all is giving us more of it to solve the problem. Sad thing is that they are getting away with it.