| Re: did the Laissez-faire free market create the perfect storm not seen since the great depression? fear of lending, fear of borrowing, the only instances we have experienced both in modern times are the Great Depression and Japan |
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Group: sci.econ · Group Profile
Author: kikivan6kikivan6 Date: Feb 9, 2008 01:54
On Feb 9, 12:30 am, "Marcello" nospam.com> wrote:>> did the Laissez-faire free market create the perfect storm not seen
>> since the great depression? fear of lending, fear of borrowing, the
>> only instances we have experienced both in modern times are the Great
>> Depression and Japa
>
>
>> there was no government intervention here, the groups of sellers,
>
> I don't know how you can say there was no government intervention when the
> government permits the Fed to print its money as well as set the prime
> banking rates. Very poor monetary policy is the cause of this massive
> bubble, and in fact if left alone in a laissez-faire situation (something
> not likely to happen) it would correct itself in time. But the government
> will continue to bail out those who chose poorly, both individual and
> institutional. Blaming this mess on laissez-faire is like blaming your
> child for the way he dresses when you buy him all his clothes.
Not all governments are the same. An elitist government is the
worst kind of government for Democracy since it is for the few, of the
few. Ever since Reagan, U.S. government leaned towards elitism (and
favored the rich.)
The monetary policy of this elitist government is a "borrow and
spend" scheme to beef up the real estate and stock market, and used
deregulation to facilitate business expansion. The combination of both
(cheap money and lack of regulation) caused the subprime crisis.
Without a populist or centrist government to protect the
disadvantaged, the rich will take the poor for lunch
-- with or
without the help from the elitist government.
So when we discuss "government," we need to recognize what kind of
government we are talking about.
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