tag:blogger.com,1999:blog-22657443.post7510024269098279111..comments2023-12-31T03:18:37.403-06:00Comments on "E pur si muove!": Is Being Unregulated the Problem? I Struggle with a ConundrumLester Hunthttp://www.blogger.com/profile/14746157071827337723noreply@blogger.comBlogger12125tag:blogger.com,1999:blog-22657443.post-80829514538005503022008-09-26T07:15:00.000-05:002008-09-26T07:15:00.000-05:00Obviously the housing boom was supporting the econ...Obviously the housing boom was supporting the economy and the war but unfortunately you couldn't export the houses to other countries, so instead they were exporting the subprime mortgage "products" to overseas banks via wall street banks.<BR/><BR/>The 50's and 60's economy was the economy of Brokaw's "greatest generation" who could build just about anything with their hands (like our dads), Reagan's 80's economy was also the baby boomer economy of Gates and Jobs who could innovate anything, Clinton's 90's economy was the internet economy that globalized everything and GW's 2k economy was the Gen-Xr's economy who had to own everything anyway they could finance it.<BR/><BR/>Obviously our capitalist cleverness outstripped our true productiveness which was surpassed by Asia. Likewise NAFTA made us into more a Latin country and the hispanic people are more like our dads' generation who work hard, own their own homes and do not get caught up in the stock market.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22657443.post-25797212598919022092008-09-26T07:01:00.000-05:002008-09-26T07:01:00.000-05:00I think GW's assessment "that wall street got drun...I think GW's assessment "that wall street got drunk" is the most accurate so far. Hey, it takes one to know one.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22657443.post-32970277746133131232008-09-25T23:55:00.000-05:002008-09-25T23:55:00.000-05:00Maybe someone is coming here who hasn't seen the f...Maybe someone is coming here who hasn't seen the following, so I'll add it here. Sheldon Richman had this to say on his "Free Association" blog:<BR/><BR/><I>The people who refuse to believe that their beloved home-ownership promotion program is largely to blame for what's going on today can't quite make up their minds about what is to blame. They "know" it has something to do with not enough regulation. But what? First they argued that the Bush regime engaged in an orgy of deregulation. They had to drop that line, however, because the last act of significant banking deregulation was signed by Bill Clinton in 1999. So they changed to "someone was asleep at the switch." Vivid metaphor, but no one has come up with an actual instance of a regulator being asleep at whatever switch he allegedly was asleep at. So now there's a new argument, voiced by Hillary Clinton this morning: the Bush regime failed to anticipate the need for a new regulatory structure in the global economy. (I won't ask why her husband also failed in that regard.)</I>Lester Hunthttps://www.blogger.com/profile/14746157071827337723noreply@blogger.comtag:blogger.com,1999:blog-22657443.post-43987245440301902272008-09-24T14:31:00.000-05:002008-09-24T14:31:00.000-05:00I've been silently reading this blog for a while a...I've been silently reading this blog for a while and have to say, I think this is the best one yet. "Deregulated does not mean unregulated"? What a glittering gem of reason! The two most insightful and comprehensive articles I've seen so far-<BR/>http://www.cato-at-liberty.org/2008/09/22/blame-urban-planning/<BR/>http://www.reason.com/news/show/128972.htmlWilliamhttps://www.blogger.com/profile/07820218738395288867noreply@blogger.comtag:blogger.com,1999:blog-22657443.post-33792229506448293052008-09-24T09:47:00.000-05:002008-09-24T09:47:00.000-05:00The Community Redevelopment Act of 1995 (?) made i...The Community Redevelopment Act of 1995 (?) made it increasingly difficult for lenders to deny loans to high-risk buyers, who were often minorities, because the 'excessive' credit checking was viewed as discrimination. Thank the socialist-leaning Dems for this piece of the puzzle. There is also a new book out (i've not read it, but plan to) by Amity Schlaes, who presents a new interpretation of the New Deal and how FDR's socialist policies probably deepened a recession into a ten-year depression. Obama had acted like a deer in the headlights since this economic hysteria started. He's also pretty anti-trade; the Great Depression was a time of high trade tariffs, I believe. I'm not a big McCain fan, but to me he's the lesser of two evils. The endless, ad hominem cracks at Palin (whom I am undecided about) only reinforce in my mind that the Obama/Biden platform is just empty of anything besides a raw desire to hold power.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22657443.post-47748763824811833692008-09-24T09:25:00.000-05:002008-09-24T09:25:00.000-05:00I think you're right. Mr Obama's original appeal w...I think you're right. Mr Obama's original appeal was Lincolnesque "to the better angels of our nature" but his own party is full of its devils as well. The Divine Comedy as GW sits in front of the WH fireplace asking, "How do you tune this fiddle?"Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22657443.post-65576898121678916942008-09-24T09:03:00.000-05:002008-09-24T09:03:00.000-05:00As the larcenous bailout package goes into congres...As the larcenous bailout package goes into congress, we will soon see whether the Democrats are any better than the Republicans. It looks like we are going to see that they are not. I am worried that they will alter it so it will steal even more.Lester Hunthttps://www.blogger.com/profile/14746157071827337723noreply@blogger.comtag:blogger.com,1999:blog-22657443.post-24920591651657115282008-09-24T08:58:00.000-05:002008-09-24T08:58:00.000-05:00True and this time around the rates were hammered ...True and this time around the rates were hammered down and money was driven into the mortgage market which wound up as subprime loans which were repackaged into derivatives that found their way into wall street investment bank portfolios. Unfortuantely Mr McCain who graduated 5th from the bottom of his naval academy class along with his millionairess wife who has permanent membership in the Betty Ford Clinic will sell himself as an economic reformer. Of course when the attacks on Obama begin to wane, McCain's running mate will ramp up the evangelical mystics in a crusade to save America. Like Nero, first they lit the fire and now are trying to make themselves look like heros trying to put it out. If you wrote this as a Hollywood script they would laugh.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22657443.post-81442832018642145512008-09-24T08:45:00.000-05:002008-09-24T08:45:00.000-05:00The stock market run up of the twenties was caused...The stock market run up of the twenties was caused by the Federal Reserve deliberately hammering down the interest rate, thus driving money out of the debt market and into the equity market. This was in the short-term interests of the rich, of course, but a lot of non-rich people also joined in the hay ride. Eventually, though, it triggered the crash of '29 and to some extent the Great Depression. Greenspan, as a former advocate of the gold standard, was betraying his earlier principles by doing the very same thing. Sadly, the results will be similar as well.Lester Hunthttps://www.blogger.com/profile/14746157071827337723noreply@blogger.comtag:blogger.com,1999:blog-22657443.post-53859179358794022142008-09-24T08:15:00.000-05:002008-09-24T08:15:00.000-05:00Well unfortunately it's more of a social problem t...Well unfortunately it's more of a social problem that turned into an economic problem. During the early 20th century the old line wasp families that controlled wall street preyed on the immigrant class for cheap labor and oversold the market with pure sleaze. GW Bush who is descendent of those people once again sat back as the minorities were victimized and little was done to control the borders as a source of dirt cheap labor. Greenspan who is a Rand disciple sat before congress and the American people; and disassembled on Bush's behalf so we could continue to finance a war which was bankrupting this nation. Obama is correct when he points out our problems are socially based but instead the Rupert Murdochs and Limbaughs of the world unleash their diatribes and raise "moral" issues like gay marriage. The definition of Armagedon is when the devil can't save himself.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-22657443.post-47309332698301109062008-09-24T07:44:00.000-05:002008-09-24T07:44:00.000-05:00Obama thinks we live in an Ayn Rand world of no re...Obama thinks we live in an <BR/>Ayn Rand world of no regulation, I do not. As to its not happening elsewhere (yet!), what I've said here suggests and explanation for that too. Since my explanation is ultimately political and not economic, I have to say that the political situation here is different. And it is. America has always been more profoundly democratic in its point of view than other countries. In particular it has always been addicted to two democratic ideas. 1) Everyone should have as much education as can me crammed down their throats. Hence our unique public education system, and you know how well that works. 2) Everyone should be able to own their own home. Hence our monetary and financial systems. And those of us who have said that it doesn't work either are now in a position to say (and believe-you-me this is no fun at all) "we told you so."Lester Hunthttps://www.blogger.com/profile/14746157071827337723noreply@blogger.comtag:blogger.com,1999:blog-22657443.post-84627470021553403562008-09-24T06:29:00.000-05:002008-09-24T06:29:00.000-05:00It's funny that you didn't see this kind of mortga...It's funny that you didn't see this kind of mortgage disaster occur in Europe or Asia or any other civilized part of the world. Even though we are the supposed moral leaders, the real estate brokers and bankers preyed on the people of this country like space aliens. Sadly many minorities were victimized the worst which is why there is the childish backlash against Obama when he raises this as a moral issue. You can still have your delusional dreams that we are living in Ayn Rand's world of the 1950's but it's time to wake up junior.Anonymousnoreply@blogger.com