12-19-2007, 06:42 PM
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Analyst
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Join Date: May 2005
Posts: 2,352
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we will see how things pan out
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Originally Posted by Blade";p="
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Originally Posted by Zoe";p="
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Originally Posted by Blade";p="
If you google that phrase, you'll find all kinds of chowder heads saying this proves "capitalism doesn't work". Actually, it proves how well it works. What we're seeing now (except for the ill-conceived government bailout) is capitalism efficiently removing from the market lenders who make very risky loans, and borrowers who take out loans they can't pay. Problem? No problem.
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There are no "final words" on this mess. But I don't know of anyone who says that "capitalism doesn't work". Capitalism works just fine as long as it's corruption and enthusiasms are contained- hence regulation.
It did not need to happen. Greenspan could have exerted restrictions on lending institutions in advance of a crisis. He was warned. Instead Bernanke must regulate/ offer assistance by shutting the stall door after the horse is gone. It proves, once again, that people are greedy b*st*rds and regulation IS necessary. If you think that the only people who will suffer from the subprime debacle are banks and foolish borrowers, then all I can say is, enjoy your delusions while you can. You are already poorer, guess you have not noticed yet.? I will point out the error of your ways in the months to come. |
Let's see if I can scope this down for you.....
You appear to be saying that the fallout from the "mortgage crisis" affects people who weren't involved. The economy was stimulated by an illegitimate housing boom that shouldn't have taken place. Now the market is restoring the economy back to where it should be. The american economy can grow, if that's what is desired, by living within our means, cutting bureaucracy and regulation, rewarding merit, lowering taxes, stopping illegal immigration, and in general letting lose the productive forces of society. And you should note that the TITANIC greedy b*st*rds in our society are certainly government, at all levels. |
I am saying that "bubbles" are extremely dangerous and should not be allowed to develop. But things won't go "back to where it should be". Housing prices are not gently rising; they are going down! No one wants to lend, people ar scared to buy. People are going bankrupt. The credit card industry is next. Greenspan kept interest rates SO low, for so long and failed to oversee the lending industry, that demand for housing churned into another example of irrational exuberance. The hangover is going to affect all of us. It is influencing confidence in the stock market, it is altering confidence in the value of the dollar, it is changing people's perception about their economic well-being and what they can afford. We are, all of us, a much poorer country. Better get used to it. Foreigners are buying our assets. Internationally, people don't want to price things in dollars any longer. It is no time to be smug about your particular circumstance.
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