[quote]atypical1 wrote:
The trouble is that all of those firms were essentially insolvent because of the loss of valuation of all of the debt that they were holding. [/quote]
Yes and no. Their balance sheets looked like garbage, but cash wise a couple would have folded, and a couple would have survived.
This would have been good and bad. It would have thinned the heard, making the survivors even more powerful in the end, but at the same time, giving them a check figure to work off going forward.
But, it was all for not really, because:
They were doing what was in the best interest of themselves and, by extension, the home owners. They insured all these securities.
Just too bad they all insured with one, stupid fucking company. I still contend AIG is holding the biggest bag of shit here.
The government socializing losses like they did can be argued as a free market transaction, sure. But when it is the “tax payers’ money” (in this case the tax payer’s debt) that is forcing the tax payer to buy bullshit, and force isn’t freedom.
Well no, because both parties acted irresponsibily. The buyers didn’t know what the banks were doing with the debt or could they apparently do basic math, and the banks were approving people who had no right being approved, often times with government urging and backing.
You can’t have freedom without responsibility, otherwise you end up in the nanny state we are in today.
But about the government giving the money: in my heart I am still not sold on government intervention, but in my head, I know, at least in todays world, you are going to have it happen. 100% of the time, so I guess I would rather pick and choose better recipients. At least giving to the tax payers gives them their own money/debt back…
Fine, I am not going to repeat what I’ve said, and in today’s world, you are right that we can’t rely on the market to rein in the monster we/government have created.
You should be FDIC insured.
Which, to contradict myself, lol, I’m a proponent of.
[quote]Right now nobody has a good handle on the economy and what needs to be done to fix it. Obama has obviously led us down the wrong path. Romney’s answer is to lower corp taxes but, like you alluded to, what the corps (and small businesses) really need to do is start hiring.
james[/quote]
Yeah, and fucking with the tax code is not going to make a major play in that area, at least not what people think it will do. The Occupiers want big brother to take from the rich, and do what with it, I have no idea, they spend like dickheads. The Romeny’s of the world see the tax breaks as some savior. Reality is both will effect change, some change in the wrong direction, some change in the right direction, but in a vacuum, neither option solves shit.