One Of YOU Econo Types- Help!

Discussion in 'Economy' started by Annie, Apr 1, 2009.

  1. Annie
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    Annie Diamond Member

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    Whenever I read something economy related that makes sense to me, I get nervous. What's your take on this?

    Links at site:

    The Volokh Conspiracy - -

     
  2. Agnapostate
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    Agnapostate BANNED

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    Ah...moral hazard. Moral hazard and adverse selection are two of the most critical agency problems caused by asymmetric information in a corporate financial structure. In this broader scheme, Stiglitz is quite right to note the moral hazard cost involved. Indeed, I don't know why so many deluded progressives were under the impression that an administration that appointed officials that played a role in causing this financial crisis (such as Rahm Emanuel), would be equipped to solve it, a decision that was, in Chomsky's words, "like appointing Osama bin Laden to lead the war on terror."

    One point of contention that I do have with this analysis is the insinuation that there's such a limited selection of choices involved. Since Bush already thoroughly abandoned his free market pretenses through effective nationalizations, I don't see why a sense of realism couldn't be injected into this equation, seeking to nationalize remaining major financial institutions and whatever other industries might be subsidized and then implementing decentralized control of their management structure on municipal, county, and state levels, as opposed to consolidating managerial control in the hands of the federal government. We cannot accept such an absurd divergence between "ownership" and actual managerial control, since, as noted, American taxpayers are burdened with the costs of "ownership" in cases of financial mismanagement whilst not being able to democratically manage the institutions that they are allegedly responsible for.
     
  3. neurosport
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    neurosport BANNED

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    so we have white house stuffed full of bankers handing out our money to other bankers

    where does the "conspiracy" part come in ?
     
  4. Annie
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    Annie Diamond Member

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    LOL! You didn't check the link? It's a 'name'.
     
  5. editec
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    editec Mr. Forgot-it-All

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    Yeah, spot on, dude.

    There's no conspiracy.

    There's just a consistent pattern of a select group of people working together to insure that they stay rich and the rest of us pay to insure they do.

    But since it's done PUBLICALLY, that's all A-Okay.

    What amazes me is some of you think this is socialism, and others of you think this is capitalism.

    Where I come from, we just call this theft.
     
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  6. Annie
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    Annie Diamond Member

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    He was caught on the link name: Volokh Conspiracy
     
  7. Agnapostate
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    Agnapostate BANNED

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    Oh, but that is capitalism. What is isn't is a free market. Mainly because those don't exist outside of the textbook, therefore making "free market capitalism" somewhat of an oxymoron, and its supporters just that also...without the "oxy."
     
  8. neurosport
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    neurosport BANNED

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    yeah link names on this forum are auto generated.

    in most places you write your own name ...
     
  9. Annie
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    Annie Diamond Member

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    I understood what happened. In fact there was no 'conspiracy' about the post. ;)
     
  10. editec
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    editec Mr. Forgot-it-All

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    To imagine that the formerly rich and powerful gave up their wealth or their power and gave the power to the people is, of course, absurd.

    What they're calling capitalism is merely a sham system of power and control.

    Just as what every state I can think of who declared themsevles socialist states were nothing but shams, too.

    You're anachro-socialism might have existed for a year or two in one or two places, but they didn't last long because some facist system pretending to be something else will always wipe that off the face of the earth, Agna.

    That is the social nature of mankind that stems from the nature of human beings.

    Basically, any time enough like minded people get together to create anything even remotely like a fiar society, the monsters will wreck it.

    They must, otherwise too many people might realize that there's a fairer way to structure society.

    The hippies learned this lesson when many of their communes found themselves constantly under attack from the local police and power structures.

    Now the ONLY way to create a commune is to create it, but never mention that its a communal system UNLESS you pretend that it is a RELIGIOUS community, and even THEN, the likelihood is that the local power and control freaks will be threatened by it, and start looking for reasons to make their lives more difficult.
     
    Last edited: Apr 1, 2009

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