A Complete Waste of Space

http://reason.com/archives/2012/08/05/t ... vernment-r

This is an excellent 2 pg article on the value of privately managed economy, in concurrence with Nic's post above.

nicolas10 wrote:The point is, whenever you manipulate the market, it ain't a free market anymore. If you prevent a bank from going down, you are a communist. Period.

Nic

I agree completely,in principle. It was wrong to deregulate and allow banks to grow both so large and with such diverse interests beyond simple banking that they had to be bailed out. But they DID, at the time it happened, have to be bailed out, because we came very close, on two occaisions, to complete loss of liquidilty. Now, I am not sure how bad the ripple effect would have been in Europe(I suspect pretty severe), but to Americans, it would have meant that individuals would have had NO access to any money they weren't in possession of, and would have ZERO credit available. Not good.

The bank would have had to be nationalised, their assets sold by the gvt, sold & given the debtors, starting with the people who had accounts in those banks.

The only thing you gain by saving the banks is to make them take even more risks since they know they will be bailed out anyways.

But hey, it's not like we didn't have any other choice because they control the politicians right?

Nic

I laid out the issues for you above Nic, and the rules are in place now that should prevent any such future bailout. How long could you get by without access to cash or credit? It really was that serious. I have one friend with an MBA from Harvard, working for a small private bank who claims to this day that we missed a liquidity meltdown by a matter of hours on one occaision in 2009.

What a surprise! Romney is now saying he likes part of Obamacare.

I'll say one thing about Romney. He's really good about changing his mind. The only thing he's good at.

Buzz wrote:He's really good about changing his mind.

Yeah, that dude has waaaaaaaaaaaaay to many female chromosomes!

a final reply(before I head out for the week) to Barfly--

I read, but fundamentally disagree with, the Reason article. Why? Because it never works out that way for the average citizen.
The only time the US economy worked in a fair fashion was during the 50's and 60's, due to a combination of taxation that held the inflation of top level salary bloat down, coupled with really strong central regulation of the investment and banking sector which prevented banks from getting involved with brokerage, investment underwriting and trading along with insurance. Also disallowed were such dubious investment vehicles as swaps and bundled bonds.

I also disagree with your view of an America without a central government to provide support during disasters, providing help in education, health, housing or food to those who need it. I don't regret for one second Teddy Roosevelt's idea of vast areas of National Parkland(I will benefit along with my family from the existence of Assateague National Seashore for the coming week, we don't own the beach, but get to share it with our fellow citizens....a great deal for all). In short, I figure our debate comes to an end because I fundamentally don't wish to live in your view of America, and you seem to feel likewise. I suspect more people, when faced with the choice, will agree with my view. November might shed a wee bit of light upon that.

It is funny watching you masturbate callmesick.
Those of us who are against Obama are not at all swayed
by your penis pounding. We will vote Republican and defeat
the communist no matter how many lies you tell.


HH

callmeslick wrote:I laid out the issues for you above Nic, and the rules are in place now that should prevent any such future bailout. How long could you get by without access to cash or credit? It really was that serious. I have one friend with an MBA from Harvard, working for a small private bank who claims to this day that we missed a liquidity meltdown by a matter of hours on one occaision in 2009.

Oh crap you would have had to nationalise money creation? Oh wait isn't that one of the few things that the STATE should do?

Nic

HappyHappy wrote:It is funny watching you masturbate callmesick.
Those of us who are against Obama are not at all swayed
by your penis pounding. We will vote Republican and defeat
the communist no matter how many lies you tell.


HH

You'll lose like you always do. You're good at it.