Hey lefties, prove that capitalism got us into this mess.

Discussion in 'Economy' started by Liberty, Jan 21, 2012.

  1. Liberty
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    Liberty Silver Member

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    Seriously. Prove it. From everything I have seen, it is corporatism that is the problem, not free markets.
     
  2. Old_Liberal
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    Old_Liberal Member

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    Call it what you want, but what got us, and the world into this mess is simple. Bank deregulation that allowed too big to fail banks to come into existence and the deregs that allowed for these exotic instruments of profit.

    We traded a sound banking system that never caused a crash and recession, for one that allowed for greater profits in banking. The reason we regulated banks in the first place was to avoid crashes, that were common pre 1929, large bank failures, panics, etc.

    The trade off for higher bank profits was the loss of soundness, and this aint rocket science.

    When institutions used to hold their loans instead of selling them off to be bundled they were a helluva lot more careful on who they gave credit to.

    The high unemployment and high underemployment problem is nothing more than a reflection of what happens when corporations are allowed to off shore american jobs.

    This is the big picture which the media never mentions. The middle class is doomed, and the financial led crashes are not over.

    You unfetter capitalism and it moves to cheap labor and deregulates banking. Offshoring is capitalism, in its worst flavor.
     
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  3. C_Clayton_Jones
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    C_Clayton_Jones Diamond Member

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    No one said it did.

    It was a lack of regulation, having noting to do with ‘capitalism’ per se.

    Capitalism is an excellent system, but not perfect – nothing is. Appropriate oversight is needed to mitigate capitalism’s inherent risk.

    A pragmatic approach is best, a blend of pubic and private sectors – to adhere blindly to a given economic dogma, left or right, will only result in disaster.
     
  4. Liberty
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    Liberty Silver Member

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  5. HUGGY
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    HUGGY I Post Because I Care Supporting Member

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    prove that capitalism got us into this mess.


    Stupid question. Of course it was some aspects of "capitalism" that got us into this mess because that is the economic system we live with.

    What you need to do is stop being such a willfully ignorant tool and be honest in researching the answer to your question/statement.

    In short form what caused the mess is that banks changed what they did and how they made money over the last twenty plus years from just acting as depositories of savings and making safe loans based on those savings. The regs changed to allow banks to act as speculators leveraging "investments" by upwards of 30-40 to one. During these decades the speed of banking dramatically increased also so much of the speculation was on a day to day basis. As long as the bubble kept growing, which was a rediculous assumption on their part, there was no sign of danger and being banks with funds protected by the fed they all shared a false sense of security. When you are essentially buying stocks a dime on 4 dollars and the stock prices keep going up there are fortunes to be made. The risk is that in that environment one is forced to pay losses the next business day with cash. When a critical point of a downturn or bubble burst occurs there just isn't enough capital to cover the losses and even a big name bank can go tits up if they can't cover.

    So yes...unregulated capitalism is the system that allowed these risks to be taken and the crash to occur.
     
    Last edited: Jan 21, 2012
  6. Liberty
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    Liberty Silver Member

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    i stopped reading at "economic system we live with." are you sure? Find me a definition of capitalism that allows the government to throw money at businesses to ensure their success.
     
  7. Oddball
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    Oddball BANNED Supporting Member

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    Total bullshit.

    Totally vapid platitudes.
     
  8. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    It's not a lack of regulation, we've had plenty of that for quite awhile. More precisely it's ineffective regulation, although I wouldn't stop there. There's other factors involved, but I think it comes down to poor governance.
     
  9. HUGGY
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    HUGGY I Post Because I Care Supporting Member

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    Look up "Crony Capitalism"...similar to fascism. It was the K-Street boys working for the banks writing the new laws and passed by congress that created the dangerous environment that eventually collapsed. The original intent of the laws that allowed the bailouts was the FDIC. Yours and my government passed legislation that allowed the transformation of an intelligent backstop to a catch all safety net for any wild hairbrained scheme a banker could dream up such as those pesky derivitives. So when it comes right down to it ...it is really our own fault for putting ourselves and the world at risk by putting theives and idiots at the helm with our votes. Elections have consequences.
     
  10. TakeAStepBack
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    TakeAStepBack Gold Member

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    That isn't possible. We don't have capitalism here.
     

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