Inadequate federal regulation, not Romney’s Bain Capital was at fault.

Discussion in 'Economy' started by Supposn, Jan 16, 2012.

  1. Supposn
    Offline

    Supposn Senior Member

    Joined:
    Jul 26, 2009
    Messages:
    863
    Thanks Received:
    27
    Trophy Points:
    51
    Ratings:
    +31
    Inadequate federal regulation, not Romney’s Bain Capital was at fault.

    During the Republican primaries, there’s been unjustified criticism of Romney’s Bain Capital and similar financial industry enterprises. Such enterprises are being faulted because many if not a majority of such ventures profit only the enterprises’ owners and executives.

    We all do what we can to function within our environment and commercial enterprises exist within environments primarily affected by the nations’ governments. When Bain Capital maximized their profits regardless of the effects upon all others, it behaved true to its purpose. Bain and Romney should not be faulted for what was essentially driven by governments’ laws’ and regulations.

    The faults are due to the voters and the office holders they elect.

    I’m a proponent of transparent government that respects individual persons and other entities privacy and self-determination, identifies their and the remainder of our societies vulnerability for harming themselves or being harmed by others, protects all from such harm and prohibits such activity that is contrary to our society’s better interests, and is minimal interventionist.

    I’m also a proponent of competitive free enterprise, level open markets, ALL nations and USA states sovereignty and equal treatment under law.

    Rather than considering these as contrary political positions, I consider them all as valid but it’s not unusual for them to require parsing to determine desirable outcomes. Our goal is minimum inferior and most superior public policies; "We got to accentuate the positive, eliminate the negative”.

    Regarding specific criticism of commercial enterprises’ contributions to our nation’s trade deficit, refer to these topics:
    Refer to topics:

    “Warren Buffett's concept to significantly reduce USA's trade deficit”,
    posted @ 08:10 PM, August 30, 2009
    last posted @ 06:56 PM, Dec 27, 2011
    And
    “Trade deficits are ALWAYS detrimental to their nations’ GDPs
    posted @ 10:25 AM, November 30, 2011
    last posted @ 01:26 PM, December 23, 2011

    Respectfully, Supposn
     
  2. rdean
    Offline

    rdean rddean

    Joined:
    Aug 9, 2009
    Messages:
    60,075
    Thanks Received:
    6,885
    Trophy Points:
    1,840
    Location:
    chicago
    Ratings:
    +14,918
    Clearly, it's why is a mistake to vote for Republicans.
     
  3. EdwardBaiamonte
    Offline

    EdwardBaiamonte Gold Member

    Joined:
    Nov 23, 2011
    Messages:
    27,548
    Thanks Received:
    1,130
    Trophy Points:
    205
    Ratings:
    +3,047
    wrong wrong wrong!!
    1) as if someone is for inadequate regulation???.

    2) Its only inadequate to those fools with perfect hindsight.

    3) some liberals like Clinton wanted Glass Steagal regulation repealed and some didn't and still don't lilke Clinton. Whats adequate other than free market regulation?

    4) After Enron, Sarbanes Oxley was supposed to be adequate.



    Warren Buffett: "There are significant limits to what regulation can accomplish. As a dramatic illustration, take two of the biggest accounting disasters in the past ten years: Freddie Mac and Fannie Mae. We're talking billions and billions of dollars of misstatements at both places".

    Now, these are two incredibly important institutions. I mean, they accounted for over 40% of the mortgage flow a few years back. Right now I think they're up to 70%. They're quasi-governmental in nature. So the government set up an organization called OFHEO. I'm not sure what all the letters stand for. [Note to Warren: They stand for Office of Federal Housing Enterprise Oversight.] But if you go to OFHEO's website, you'll find that its purpose was to just watch over these two companies. OFHEO had 200 employees. Their job was simply to look at two companies and say, "Are these guys behaving like they're supposed to?" And of course what happened were two of the greatest accounting misstatements in history while these 200 people had their jobs. It's incredible. I mean, two for two!

    “Whatever regulatory changes are made, they will pale in comparison to the change already evident in today’s markets,” he said. “Those markets for an indefinite future will be far more restrained than would any currently contemplated new regulatory regime.”-Alan Greenspan
     
    Last edited: Jan 18, 2012
  4. Supposn
    Offline

    Supposn Senior Member

    Joined:
    Jul 26, 2009
    Messages:
    863
    Thanks Received:
    27
    Trophy Points:
    51
    Ratings:
    +31
    Mr. Edward Baiamonte, excerpted from my message #79 posted to the thread of “Venture Capitalist”:

    “California Girl, my previous post was meant to answer those who find fault with Romney, Bain Capital or the financial industry on the basis that some of their ventures result in profit only for the owners and executives of the venture capital enterprises
    I found no fault with you or your initial message of this thread.

    We all do what we can to function within our environment and governments’ laws are major factors within financial enterprises’ environments. When Bain Capital maximized their profits regardless of the effects upon all others, it behaved true to its purpose. Bain and Romney should not be faulted for what was essentially driven by governments’ laws”.
    ////////////////////////////////////////

    Edward, Romney strived to maximize profits on behalf of his enterprises investors and executives regardless of the net effects upon our nation’s economy.

    A man cannot be expected to fully serve two masters. Our laws and regulations too often do not prohibit, and in some situations actually encourage activity that we should identify as contrary to the public interest.

    Although I do not fault Romney for this, I certainly would not praise Romney or Bain Capital for their gamming our laws to profit from what was detrimental to our nation’s economy.

    Regarding specific criticism of commercial enterprises’ contributions to our nation’s trade deficit, refer to these topics:
    Refer to topics:

    “Warren Buffett's concept to significantly reduce USA's trade deficit”,
    posted @ 08:10 PM, August 30, 2009
    last posted @ 06:56 PM, Dec 27, 2011
    And
    “Trade deficits are ALWAYS detrimental to their nations’ GDPs
    posted @ 10:25 AM, November 30, 2011
    last posted @ 01:26 PM, December 23, 2011

    Respectfully, Supposn
     
  5. editec
    Offline

    editec Mr. Forgot-it-All

    Joined:
    Jun 5, 2008
    Messages:
    41,427
    Thanks Received:
    5,598
    Trophy Points:
    48
    Location:
    Maine
    Ratings:
    +5,617
    Assuming no laws were broken I suppose that is right.

    Our system needs fine tuning.


     
  6. EdwardBaiamonte
    Offline

    EdwardBaiamonte Gold Member

    Joined:
    Nov 23, 2011
    Messages:
    27,548
    Thanks Received:
    1,130
    Trophy Points:
    205
    Ratings:
    +3,047

    Of course you are merely pretending, as a liberal would, that there were negative net effects. Now you know why you forgot to list the negative effects.
     
  7. Supposn
    Offline

    Supposn Senior Member

    Joined:
    Jul 26, 2009
    Messages:
    863
    Thanks Received:
    27
    Trophy Points:
    51
    Ratings:
    +31
    Mr. Edward Baiamonte, regarding specific criticism of commercial enterprises’ or entrepreneurs’’ activities which are legal or apparently less subject to regulation activities but are more or less detrimental to our nation’s economy; refer to these topics:

    “Warren Buffett's concept to significantly reduce USA's trade deficit”,
    posted @ 08:10 PM, August 30, 2009
    last posted @ 06:56 PM, Dec 27, 2011
    and
    “Trade deficits are ALWAYS detrimental to their nations’ GDPs”,
    posted @ 10:25 AM, November 30, 2011
    last posted @ 01:26 PM, December 23, 2011
    and
    “Capital gains income’s tax discount is unjustified”,
    posted @ 11:02 PM, April 16 2011.

    I have not written of enterprises operating in the USA but under the regulation or lack of regulations and/or under the oversight of foreign governments.
    Writing criticism of U.S. firms activities and relationships with foreign nations and/or numbered bank accounts would be similar to “shooting fish in a barrel”.

    Respectfully, Supposn
     
  8. EdwardBaiamonte
    Offline

    EdwardBaiamonte Gold Member

    Joined:
    Nov 23, 2011
    Messages:
    27,548
    Thanks Received:
    1,130
    Trophy Points:
    205
    Ratings:
    +3,047

    Of course you are merely pretending, as a liberal would, that there were negative net effects. Now you know why you forgot to list the negative effects.[/QUOTE]


    still unable to describe these "net effects" I see ???????
     
  9. Supposn
    Offline

    Supposn Senior Member

    Joined:
    Jul 26, 2009
    Messages:
    863
    Thanks Received:
    27
    Trophy Points:
    51
    Ratings:
    +31
    EdwardBaiamonte, I fault us, USA’s voters and our elected officials for most commercial activities that are contrary to our nation’s economic interests.

    Considering just some of our nation’s inadequate banking and finance regulations:

    Our nation’s and a good portion of the world’s economy was and still remains detrimentally affected because federally insured banks began functioning as investment banks; Nixon signed the bill permitting government supported entities, (i.e. Fannie and Freddie Mae) to deal with non federally insured loans.

    Financial institutions are permitted to purchase financial instruments that are not generally understood but function as monetary insurance against an occurrence of no monetary risk to the institution itself.
    For good reason the insurance industry will not sell policies for anything that’s not a monetary risk to the purchasers. Insurance companies realize that such sales would be of net detriment to their own interests. I don’t know if such insurance transactions are illegal but there’s general concurrence that such purchases are contrary to the public interest.

    Conservatives generally believe that what’s to the net benefit of the commercial community is also to our society’s net benefit. I believe to a great extent that is the case but it’s far from an absolute truth. My best interests can and on occasions do differ from my own family’s. Conservatives do not appreciate it’s not rare for commercial interests to diverge from that of our society. It’s for those occasions we require regulations’ of those commercial entities.
    I can’t spare the time to list and explain the many other commercial and other interests divergence from our societie's better economic interests.

    Respectfully, Supposn
     
    Last edited: Jan 23, 2012
  10. ABikerSailor
    Offline

    ABikerSailor Platinum Member

    Joined:
    Aug 26, 2008
    Messages:
    31,362
    Thanks Received:
    4,794
    Trophy Points:
    1,140
    Location:
    Amarillo TX
    Ratings:
    +8,411
    Yanno.............I don't blame Romney or Bain capital specifically.........I blame the lobbyists that they sent to DC to get the regulations removed.

    And then after that, I blame Romney and Bain capital.
     

Share This Page