Look to places where regulations have indeed eliminated risks of failure and fix THAT, don't dumb down what banks are able to invest in by eliminating upside.
that statement turned me on.
correction for bad investors is to simply run out of capital to invest. then they lose their jobs. we need to get rid of the rules that keep them there despite their performance, and stop the line of wheelbarrows full of money that is leaving the fed and ending up at the banks. the NYTimes guy is tarded.
this is completely wrong. the assumption of what caused the fall was wrong.
the punishment for bad investments is to let banks die off when they run out of capital, and not to give them free money to stay in business. or, in the end, to let banks lose money for bad investments. this is how investing works. people make educated guesses. when they are right, they get money. when they are wrong, they lose money.
big banks get free money (or minute interest money) from the fed, and loan it out (money goes from treasury to the fed, then fed to the banks, then banks back to the treasury). the punishment for a bad investment should be that one has to eat their losses. and buying insurance from a company against those losses, and then letting the gov't back that entire insurance company shouldn't happen. so the gov't is breaking the rules. they are letting banks get money when the banks are right, but not letting them lose money when the banks are wrong.
if you want to punish brokers for bad investments, how about we just let them eat their losses like the rest of us.
the crash happened because there was too much money out there. the fed is printing money out of nowhere, and banks had so much money that they were giving it away to idiots in ARM loans and other bad loans. the world righted itself, and a few trillion was lost (in thin air, the same way it was created), and things have been fine for now. this is a decent explanation of why interest rates haven't skyrocketed, despite the fact that the gov't is printing an insane amount of money. soon, once the economy picks up, you will see mass inflation.
the problem is that the banks gave out bad loans, the fed bought those loans from the banks at 100 cents on the dollar, and then resold the loans back to the banks at half price. the mortgage market was never allowed to correct itself, meaning that those debts weren't allowed to be called. the banks get to keep the interest on the loans, and the taxpayers pay the money lost on each loan. the gov't also makes sure it has some tight regulation around some big industries so that it can keep prices high (real estate is a good one). prices have fallen, but not as far as they should.
all of this anger at banks is very, very misdirected. it was the gov't who kept the banks from seeing the results of their own actions. the banks were bailed out by the gov't. they didn't bail themselves out. a recent south park episode hit on this a bit. the banks could have been corrected if the gov't let it happen. the gov't is to blame here. depression stinks, but it is a correction. prices will fall to the points at which they should fall. massive markups will go away because people want to be able to sell their products.
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Look to places where regulations have indeed eliminated risks of failure and fix THAT, don't dumb down what banks are able to invest in by eliminating upside.
that statement turned me on.
correction for bad investors is to simply run out of capital to invest. then they lose their jobs. we need to get rid of the rules that keep them there despite their performance, and stop the line of wheelbarrows full of money that is leaving the fed and ending up at the banks. the NYTimes guy is tarded.
this is completely wrong. the assumption of what caused the fall was wrong.
the punishment for bad investments is to let banks die off when they run out of capital, and not to give them free money to stay in business. or, in the end, to let banks lose money for bad investments. this is how investing works. people make educated guesses. when they are right, they get money. when they are wrong, they lose money.
big banks get free money (or minute interest money) from the fed, and loan it out (money goes from treasury to the fed, then fed to the banks, then banks back to the treasury). the punishment for a bad investment should be that one has to eat their losses. and buying insurance from a company against those losses, and then letting the gov't back that entire insurance company shouldn't happen. so the gov't is breaking the rules. they are letting banks get money when the banks are right, but not letting them lose money when the banks are wrong.
if you want to punish brokers for bad investments, how about we just let them eat their losses like the rest of us.
the crash happened because there was too much money out there. the fed is printing money out of nowhere, and banks had so much money that they were giving it away to idiots in ARM loans and other bad loans. the world righted itself, and a few trillion was lost (in thin air, the same way it was created), and things have been fine for now. this is a decent explanation of why interest rates haven't skyrocketed, despite the fact that the gov't is printing an insane amount of money. soon, once the economy picks up, you will see mass inflation.
the problem is that the banks gave out bad loans, the fed bought those loans from the banks at 100 cents on the dollar, and then resold the loans back to the banks at half price. the mortgage market was never allowed to correct itself, meaning that those debts weren't allowed to be called. the banks get to keep the interest on the loans, and the taxpayers pay the money lost on each loan. the gov't also makes sure it has some tight regulation around some big industries so that it can keep prices high (real estate is a good one). prices have fallen, but not as far as they should.
all of this anger at banks is very, very misdirected. it was the gov't who kept the banks from seeing the results of their own actions. the banks were bailed out by the gov't. they didn't bail themselves out. a recent south park episode hit on this a bit. the banks could have been corrected if the gov't let it happen. the gov't is to blame here. depression stinks, but it is a correction. prices will fall to the points at which they should fall. massive markups will go away because people want to be able to sell their products.