http://www.guardian.co.uk/business/2...subprimecrisis

The US tax-payers be forced to foot the bill. So much for the much trumped free market capitalist system

Greed would be one of the reasons and people living beyond their means. Stupidity plays a large part too.


The US doesn't have a "free market capitalist system" if you didn't know.

In a "free market capitalist system" the US taxpayers wouldn't be bailing out anyone. The Market would rise and fall on it's own as it should. Then the Government got involved and controls the system as opposed to allowing it to do it's thing.

Bear would have gone down in a free market capitalistic system and the government interfered with that.

Taxpayers are footing the bill thanks to insured deposits.

That's better than letting the actions of the bank screw over ordinary depositors.

Whether it foreshadows a "global financial crisis" is debatable. The financial system isn't in danger of collapsing, after all.

But it does demonstrate the foolishness of relaxing regulation of banks while also insuring them. Doing so creates a moral hazard, and banks have shown again and again that they will overextend themselves and make foolish lending decisions in pursuit of larger profits.

And that's in the businesses they *understand*. The gutting of the Glass-Steagall act was a huge mistake, letting banks make the same mistakes on a larger scale in businesses they *don't* understand.

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Man up.

So, if the government is on a continuum either moving toward Constitutional government or away from it are we moving back toward a Constitutional Republic or toward fascism? The government now owns the second-biggest federally insured financial company in the United States and as raytri says YOU are paying for it. Some people got filthy rich on this boondoggle. No one, but no one is going to jail over it! That's what the government is doing in your behalf. You have nothing to say about it, you will not benefit in any way largely because YOU - whether Democrat or Republican - no longer direct your government.

Warning: Don't even think about trying to change your government because your Congress and your President just passed a law that says they can spy on you dam near anytime and anyway they want. Opposition to their actions may result in your disappearance at some date in the near future.

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You, you, and you, panic. The rest of you follow me.

Last book read: "The Gate House" ~ NelsonDeMille
Now reading: "Nam-A-Rama" ~ Phillip Jennings

Who were you responding too?

I don't think as you do on the matter of a Constitutional Republic, I would say it's a move "back" then that's not exactly what you said. I would welcome a Republic once more.

Then I agree that the People have lost control over their government.

I write in my candidate.

Guy, I wasn't responding to anyone in particular.

When the government takes control of private business under any pretext that is not a good sign. Government is largely, though certainly not completely, responsible for the financial donnybrook we are about to face (oh, it isn't over by a long shot). Government is not going to make it better. It was their job to make certain this kind of thing didn't happen. A lot of us saw it coming. Raw capitalism is capitalism at its very worse. There is a name for it, disaster capitalism. Many people saw the climate of anything goes on Wall Street and in corporate halls egged on by a wink and a nod from the Bush Administration. To be fair (somewhat) to Bush, he was/is a clueless dupe, a rube. Much of what has transpired in the last 8 years has been long in coming and was perhaps in place by design, certainly by opportunity.

We do agree, it seems, that government no longer serves at the will of the people. America is in no way a democracy. Only fools still believe.

I too refrain from voting party tickets. How could one possibly believe that either party is going to return America to the People? LOL! As for the presidential election in November I will not vote for McCain or Obama. I may write in Kucinich or Paul.

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You, you, and you, panic. The rest of you follow me.

Last book read: "The Gate House" ~ NelsonDeMille
Now reading: "Nam-A-Rama" ~ Phillip Jennings

take the above statements to the bank

major lenders have become too big to fail, and they can now take enoprmous risks recognizing that they will be bailed out by the taxpayer should they make bad choices ... as we are now seeing

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Quote:

"I like to watch the news, because I don't like people very much and when you watch the news ... if you ever had an idea that people were really terrible, you could watch the news and know that you're right."

Frank Zappa

But you don't understand. Fannie Mae and Freddie Mac are a perfect example of Congress INTERFERING with the free market capitalist system. Whenever gov't gets involved and tries to fix things, they only make it worse.

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"What exactly is this foreign policy experience?" Obama said mockingly of the New York senator. "Was she negotiating treaties? Was she handling crises? The answer is no."

The attitude of "everybody must own a home" whether they can afford one or not is the problem. And yes, Pres. Bush was a part of that----as well as many Democrats in Congress and the Senate. Because banks knew they'd be bailed out with taxpayer money, they loaned to people who could not afford them----going so far as to not even require proof of income and NOT requiring a percentage down. Gov't should NOT get involved in such things and the taxpayers sure has heck should not be bailing any of these people out either.

The problem with the federal gov't is they think the money they collect is THEIRS; NOT OURS. And they do NOT spend it wisely. And that is why tax rates should be very, very low and they should leave money with the people who earn it and will spend it more wisely.

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"What exactly is this foreign policy experience?" Obama said mockingly of the New York senator. "Was she negotiating treaties? Was she handling crises? The answer is no."