|
Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
|
| View previous topic :: View next topic |
| Author |
Message |
Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
|
 Posted: Sat Sep 20, 2008 12:07 am Post subject: |
 |
|
| It's cute how you right wingers redefine any and all words. Look up the history of joint stock companies. You will see that they were invented in the early 17th Century to share the risks and profits of business--capitalist business. Do you also consider insurance a socialist enterprise? |
|
| Back to top |
|
 |
mises
Joined: 05 Nov 2007
Location: retired
|
| Posted: Sat Sep 20, 2008 12:14 am Post subject: |
|
|
We can't use left/right, capitalist/socialist dogma. There is a healthy mixture of both.
We need a solution, not an argument. |
|
| Back to top |
|
|
Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
|
| Posted: Sat Sep 20, 2008 12:29 am Post subject: |
|
|
Nice try.
Like you, if Mom caught me with my hand in the cookie jar I'd prefer she open a discussion about arranging a regularly scheduled snack time for me to prevent further cookie theft, rather than just go directly to beating me over the head with a yard stick for my transgressions.
I'm open-minded enough to admit Democrats deserve 10% of the blame. I'm hoping the free market types are adult enough to own up to their responsibility for 90% of the mess and accept their punishment for their wretched excesses--40 years in the political wilderness. |
|
| Back to top |
|
|
mises
Joined: 05 Nov 2007
Location: retired
|
| Posted: Sat Sep 20, 2008 1:24 pm Post subject: |
|
|
This crises is not the product of the "free market". It is a product of the federal reserve.
I am not emotionally committed to my political and economic beliefs. They are very fluid. But this is not a "free market" problem. It is a central bank + fiat problem.
It is time for us to listen to those who have been warning of this situation and been correct all along.
http://www.mises.org/story/3111
| Quote: |
The American central bank has adopted the financial equivalent of the military strategy of scorched earth. The economic philosophy of the current chairman of the US Federal Reserve System can be summarized in the slogan, "No depression under my rule!" He resembles a military leader who stubbornly declares, "No defeat under my rule!" the more the chance of victory is slipping away, and defeat can be denied no longer.
The current economic disaster is the result of the combination of negligence, hubris, and wrong economic theory. For decades, an economic and monetary policy has been practiced based on the illusion of, "It doesn't matter." At first it was, "Deficits don't matter." From that, the policy of "it doesn't matter" got extended to money creation, the credit expansion, the stock-market bubble, and the housing boom. Now, we're being told that buying financial junk by the central bank to beef up banks and brokerages also doesn't matter.
As a byproduct of this mindless economic and monetary policy, financial market operators, too, have lost their heads. Trusting the official cheerleaders, investors hold on in the trenches until they will have lost their last shirt. Economic weakness is spreading around the globe. There is no new spurt of economic growth in sight. Yet many investors stay put because they have been conditioned to believe that government will bail them out.
The current financial crisis is not of a cyclical nature. The financial turmoil is the symptom of the structural imbalances in the real economy. Over decades, expansive monetary policy has gone hand in hand with implicit and explicit bailout guarantees, and this has distorted the process of capital allocation. Under such perverted conditions, those investors will win most who cast away the restraints of prudence. It is a game that can go on for a long time � up to the point when the irrationality has become systemic.
The behavior of the investment community reflects the incentive structure that has been put in place by the authorities. Investors have learnt to dance to the tunes of the pied pipers at high places. After all, the individual market player could see from those who were ahead of him in the abandonment of prudence how money is being made. In the wake of this, financial companies have become overextended and are now in need of deleveraging. Yet the core problem lies in the imbalances of the real economy. |
|
|
| Back to top |
|
|
Kuros
Joined: 27 Apr 2004
|
| Posted: Sat Sep 20, 2008 1:42 pm Post subject: |
|
|
| Ya-ta Boy wrote: |
Nice try.
Like you, if Mom caught me with my hand in the cookie jar I'd prefer she open a discussion about arranging a regularly scheduled snack time for me to prevent further cookie theft, rather than just go directly to beating me over the head with a yard stick for my transgressions.
I'm open-minded enough to admit Democrats deserve 10% of the blame. I'm hoping the free market types are adult enough to own up to their responsibility for 90% of the mess and accept their punishment for their wretched excesses--40 years in the political wilderness. |
Yeah, whatever.
Obama is one of the free-market crowd. Don't think so? The only candidate who could have rightfully claimed FDR's big government mantle was John Edwards; not even Dennis Kucinich was so fond of blatant socialist intervention.
It'll be fun to see Obama rally the Republicans and the Blue Dogs against Pelosi, because there are sure to be battles between his pragmatism and her instinctual aversion to balanced economic policy. |
|
| Back to top |
|
|
Ya-ta Boy
Joined: 16 Jan 2003
Location: Established in 1994
|
| Posted: Sat Sep 20, 2008 3:07 pm Post subject: |
|
|
| Quote: |
Obama is one of the free-market crowd. Don't think so? The only candidate who could have rightfully claimed FDR's big government mantle was John Edwards; not even Dennis Kucinich was so fond of blatant socialist intervention.
It'll be fun to see Obama rally the Republicans and the Blue Dogs against Pelosi, because there are sure to be battles between his pragmatism and her instinctual aversion to balanced economic policy. |
I'm not expecting Obama to resurrect FDR's CCC and WPA and the rest of the alphabet programs, and I doubt Pelosi is either. Both are very bright people and both see the mess. They will look for solutions with a Democratic sensibility. No doubt there will be some struggling between them, but that is designed into the system. After all, Congress is supposed to be stronger than the president. |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
