Pure
Fiel a Verdad
- Joined
- Dec 20, 2001
- Posts
- 15,135
the competence of the free market
to solve problems is shown in this subprime mortgage episode.
banks and investment houses, without regulation in this area, were able to peddle the bundles of subprimes to whomever, and the ratings systems did not work.
subprime mortgages were hawked to people who'd be in trouble as soon as the real rates kicked in, or the markets fell.
NOW, the free market, very nicely is "solving" the problem. the wealthy CEOs at Bear Stearns are unaffected. lots of ordinary people, who weren't speculating, are losing homes.
soon, everything will be in order. the gov't, the evil gov't will be called upon to help some of the banks. hating the gov, they'll of course turn down the billions of taxpayers' money. right!
rox, your market is a wonder to behold! and note that no evil bureaucracies were involved.
and of course the next step might be to try to regulate such offerings, but the lobbyists will ensure the legislation has loopholes. or silly penalties, like $10,000 fine.
or, more likely, some "creative" person will invent a new instrument, not hitherto described, and flog it to the unsuspecting, till the market again 'solves' the problem. much as you claim to be against fraud, and to want it controlled, it's integral to your system, rox.
your 'traders,' the epitome of virtue, are often hucksters, roxanne. no they are not Atilla; no one is clubbed on the head; but millions lose houses and bank accounts. to ensure a lack of moral hazard, i but you support: the homeowner loses the home; the Bear exec keeps his bonuses, right!
so all the right incentives are in place, and virtue is cultivated!
to solve problems is shown in this subprime mortgage episode.
banks and investment houses, without regulation in this area, were able to peddle the bundles of subprimes to whomever, and the ratings systems did not work.
subprime mortgages were hawked to people who'd be in trouble as soon as the real rates kicked in, or the markets fell.
NOW, the free market, very nicely is "solving" the problem. the wealthy CEOs at Bear Stearns are unaffected. lots of ordinary people, who weren't speculating, are losing homes.
soon, everything will be in order. the gov't, the evil gov't will be called upon to help some of the banks. hating the gov, they'll of course turn down the billions of taxpayers' money. right!
rox, your market is a wonder to behold! and note that no evil bureaucracies were involved.
and of course the next step might be to try to regulate such offerings, but the lobbyists will ensure the legislation has loopholes. or silly penalties, like $10,000 fine.
or, more likely, some "creative" person will invent a new instrument, not hitherto described, and flog it to the unsuspecting, till the market again 'solves' the problem. much as you claim to be against fraud, and to want it controlled, it's integral to your system, rox.
your 'traders,' the epitome of virtue, are often hucksters, roxanne. no they are not Atilla; no one is clubbed on the head; but millions lose houses and bank accounts. to ensure a lack of moral hazard, i but you support: the homeowner loses the home; the Bear exec keeps his bonuses, right!
so all the right incentives are in place, and virtue is cultivated!
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