LEHMAN, MERRILL, & AIG: Party's Over

[Dr.Horse]

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Thank goodness you aren’t runnng our economic policy - otherwise we would have contaminated milk/milk powder like in China, as well as economic bubbles and the disaster aftermath to go along w/ monopolies and cartels.</p>

<p>Btw, the banks (aside from the mortgage brokers, wall street firms, grading agencies, etc.) went berserk over the easy $$ they were making by offering mortages to people who clearly weren’t in financial shape to carry those mortgages.</p>

<p>How did the market work out?</p>

<p>Now, the banks have done a complete 360 and people and businesses w/ excellent credit and assets are having a hard time getting banks to lend them $$.</p>

<p>There’s a demand for credit by people/businesses w/ excellent credit histories (and assets to boot) and yet, banks are reluctant to lend.</p>

<p>Yep - that’s the market working.</p>

<p>A market doesn’t work unless there is confidence and confidence come w/ transparency.

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<p>I see nothing wrong with contaminated milk, why cant the consumer make a educated purchase. </p>

<p>Are you kidding me about Bubbles, they came from regulation and intervention(price fixing). Recessions, Depressions, Booms and Busts don’t exist in a pure free market. They only occur when you guessed it, we try and fix commodity prices, thus regulation. </p>

<p>I see nothing wrong with so called predatory lending. If you cant afford a house and you get it, you deserve the result of you living beyond your means. Why don’t we take it a step deeper and ask. Why were these companies given so much credit to be able to give so much debt? Again the answer is intervention by government and its organizations. In a pure free market with a stable currency based solely on the true market price of commodities, there is no excess credit. Thus problems like what we have now, and like we had in the 20’s, 30’s and 70’s could have never happened. Don’t ya find it surprising this all started in 1917.</p>

<p>The problems we have now, are based solely on fiscal policy’s we chose. Where do you think Inflation, excess credit, etc come from. We choose to have them. We choose for inflation to exist. Again in a pure free market inflation doesn’t exist and due to that Recessions, Depressions, Booms and Busts don’t exist.</p>

<p>The Austrian School has predicted all economic events since before 20’s, and they have always been correct, including our current crises. Maybe you should take a look.</p>

<p>I find it funny, the idea that we should fix our problem of inflation with well more inflation.</p>

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^ And I’m saying this as a lifelong Republican and a FISCAL conservative and someone who (generally) believes in “free markets”.</p>

<p>All the people who blab about having zero regulation have no understanding about how business and the markets work.</p>

<p>Heck, even the “FATHER of Reaganomics” (which, btw, is a bunch of crock) admitted in an interview that the lack of oversight was the biggest problem (ignoring the fact that he was one of the backers of the deregulation of the financial markets).

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<p>Well I am a graduate student of economics and tend to think I understand markets decently well. Businesses equally as well, since i invested my way through my undergrad and I am still making a bunch of money today, when the big dogs on wall street are loosing. I can say just by your post, that you don’t understand free markets. Trickle Down economics again is nothing more than collective regulation. Do you actually believe it to be hands off? How can it be, when the government still taxes highly and regulates the economy with said taxes. The socialistic structure is still intact. The federal reserve was still there creating credit. Supply side and demand side, aint all to different.</p>

<p>So to both of you, I still hold my views that a completely unregulated free market is best. The simple economics are as follows.</p>

<p>A economy cannot survive if the prices of its commodities are not precisely know. This was the downfall of the Soviet Union. The economy becomes a guessing game, like what we have now. When commodities are precisely known, Recessions, Depressions, Booms and Busts don’t exist They cant exist.</p>