Anyone Here, Regardless of Partisanship, Think This Is Inevitable?

[Annie]

Forbes.com - Magazine Article

A Voice From The Friedmanite Wilderness
Henry G. Manne 10.14.08, 12:01 AM ET

That we are in the midst of one of the most serious financial crises in history is clear. The general causes of this economic maelstrom are now pretty well known: expansion of credit via low-interest rates by the Fed; subsidization and grotesque encouragement of inappropriate housing loans (courtesy primarily of Messrs. Dodd, Frank and Schumer and the FMs); a bad accounting call on mark-to-market by the SEC; and finally exacerbation and opaqueness engendered by financial instruments too complex to evaluate, decipher or untangle.

Some might add government actions and regulations past and present, such as bans on short-sales or threats to close markets, that have prevented the private sector from making fast and efficient corrections. But that idea is not part of the consensus that has emerged.

The great credit crisis of 2008 and its aftermath come as a result of a "perfect storm" of almost unrelated events. Leftist attitudes were reaching a crescendo among the ideological classes, spurred on by such disparate and often logically irrelevant notions as racism, feminism, environmentalism, global warming, a health care crisis, an unpopular war and high energy costs. The political part of the mix included a bizarre set of primary elections and unlikely final candidates, one of whom is perhaps the most liberal figure in American politics. Globalization and increasing international trade stirred up the nativists and protectionists more than usual. The inevitable market-distorting results of interest rates kept too low showed up alongside a poor man's affirmative action lending program, all of which created a bubble that had to burst eventually. And new and not well-understood financial devices and organizations were creating public confusion and mistrust.

It was unlikely that all these influences would come to fruition at the same time, but they did. That is the nature of random events. The unlikely happens, and, almost by definition, no one is prepared for it when it does....

 

[Contessa_Sharra]

Forbes.com - Magazine Article

The "correction" is well deserved. Somewhere between Murphy and Karma.... what goes up must come down, else we'd all be ruled by descendants of the Khans or Darius!

 

[Annie]

The "correction" is well deserved. Somewhere between Murphy and Karma.... what goes up must come down, else we'd all be ruled by descendants of the Khans or Darius!

Sounds brilliant, says nothing. Vapid to the nth.

 

[Diuretic]

What's he frothing up for? It failed. Time to get back to Keynesianism. It's not the end of the world. That article was really just a lengthy dummy spit

 

[Caligirl]

I thought it was inevitable that something would have to give, but I am not certain that is what you are asking. It was inevitable that bad practices would create an illusion of money that wasn't actually there.

I think something inevitable along the lines of a population bomb lies in our future, too, and that'll make the current economic 'crisis' (I'm doing OK) look pretty small, imo.

 

[AVG-JOE]

What's he frothing up for? It failed. Time to get back to Keynesianism. It's not the end of the world. That article was really just a lengthy dummy spit

That is what it smelled like from the post - I'm glad I read your post before reading the whole article...

Thanks Diuretic!

-Joe

 

[Annie]

That is what it smelled like from the post - I'm glad I read your post before reading the whole article...

Thanks Diuretic!

-Joe

Good idea, it's always better to rely on an Australian poster on a message board, than weighing through on your own. Now you know why the Diuretics and Grumps laugh at the US posters.

 

[AVG-JOE]

Good idea, it's always better to rely on an Australian poster on a message board, than weighing through on your own. Now you know why the Diuretics and Grumps laugh at the US posters.

Not always... just sometimes, especially if the quoted tease is also a lot of words about nothing. Besides, it's not like I commented on the article - I was just thanking Di for saving me the time of reading something I wasn't sure I would be interested in in the first place.

-Joe

 

[Annie]

Not always... just sometimes, especially if the quoted tease is also a lot of words about nothing.

-Joe

Uh huh! How's your beer doing? Need a refill?

 

[AVG-JOE]

Uh huh! How's your beer doing? Need a refill?

Not drinking tonight - no debates on t.v..

-Joe

 

[xsited1]

Of course it was inevitable, and now some of the guilty parties are making the taxpayers pay for their mistakes. What's worse is that some of the guilty will make money off of this and others will get reelected. There will be no jail time for anyone responsible.

(I've got to laugh at the idea that we should get back to Keynesianism. Keynesian economics does not work, as has been proven time and time again. In God we trust, all others bring data.)

 

[dilloduck]

I thought it was inevitable that something would have to give, but I am not certain that is what you are asking. It was inevitable that bad practices would create an illusion of money that wasn't actually there.

I think something inevitable along the lines of a population bomb lies in our future, too, and that'll make the current economic 'crisis' (I'm doing OK) look pretty small, imo.

Aren't we way overdue for a plague ?

 

[Caligirl]

Yeah, we should be having one anyday now.

But I don't want to divert the thread.

 

[dilloduck]

Yeah, we should be having one anyday now.

But I don't want to divert the thread.

well--it IS inevitable, ya know. Like economy.

 

[elvis]

Aren't we way overdue for a plague ?

Plague? It was called Katrina.

 

[del]

Aren't we way overdue for a plague ?

personally, i think it'd be pretty cool if it rained frogs

http://en.wikipedia.org/wiki/Plague....B7.D7.A8.D6.B0.D7.93.D6.B5.D6.BC.D7.A2.D6.B7

 

[editec]

I used to respect Forbes Mag.

Now I think they're mostly idiots.

WHY did they have to expand credit?

Think...think really hard,.

What changed the American people from a hard -working thrifty people who traditionally saved about 5% of their salaries into debtors in the last thirty years?

Forbes either doesn't bother to mention that because they fear mobs with pitchforks and torches storming their gated communities.

 

[Ravi]

Is what inevitable?

I'm saddened that Bush's claim that our one duty in the GWOT was to spend, spend, spend.

 

[RetiredGySgt]

Not always... just sometimes, especially if the quoted tease is also a lot of words about nothing. Besides, it's not like I commented on the article - I was just thanking Di for saving me the time of reading something I wasn't sure I would be interested in in the first place.

-Joe

In other words rather then read it and decide for your self you let an Australian Bloke do your thinking for you. Just like how you are gonna let the Democrats think for you for the next 4 years?

 

[john_2008]

look here we this country needs OBAMA!!!!! mccain is bush trust me i dont know about anyone else but ive been through to much crap !!!