Originall quoted by Alice The problem isn't a relationship between government and corporations, though that's part and parcel of the Progressive state, the problem is government intervention in the market, whatever the peculiarities of it may be.
Alice I wished that the government would have intervened years ago into the financial and banking markets. If the government would have intervened our economic crises would not be in such bad shape.
I am sure that you can site several situations where the government intervention in the market was bad for the economy. Do you care to site any of those situations?
I wished that the government would have intervened years ago into the financial and banking markets. If the government would have intervened our economic crises would not be in such bad shape.
The present crisis was caused by the inflationary activities of the federal reserve, which lead to an increase in consumption and investment not backed by saving, in addition to directing capital to projects which would not ordinarily be profitable. As usual, various interventionist and regulationary policies channeled the money in peculiar ways (such as the housing market), which is what gives rise to the particular distribution of malinvestment. The solution to the present recession is to stop the inflation, regulation, subsidy etc. and let the unsustainable malinvestments collapse and let prices fall so that capital can be liquidated and put into actually profitable (that is, productive) ventures.
Try Richard von Strigl's book Capital and Production or simply google Steve Horwitz on the business cycle.
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"Freedom is intrinsically connected with private property." - Erik Maria Ritter von Kuehnelt-Leddihn, To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
I believe banks want to increase mortgage and loan rates to keep up with investors yearly interest earnings. Customers would have to ask the government for extra income to meet the bank's increasing rates. Finding another job for spare income can cause health problems if people don't get enough sleep. Gambling away small amounts of money each week on lotto might be the only answer to many people because there is no risk of stealing and the winnings leave a smile on many faces.
__________________ I learn to accept Jesus Christ and our God the Father by default.
This faith in "the market" is as misplaced as faith in communism. Without regulations to insure that the market isn't abusing the environment, labor or even fleecing investors we'd have a nightmare on our hands. We still struggle with lax regulations which encourage financial institutions to take make risky moves that could crash the entire financial system. The trick is finding the right balance between market forces and the people insuring that the market is serving the interests of society.
Originally Posted by neutronium_alice
The problem isn't a relationship between government and corporations, though that's part and parcel of the Progressive state, the problem is government intervention in the market, whatever the peculiarities of it may be.
__________________ LOVE is the LAW!
Disclamer: Awl poastings bye ACougar R subgict two speling and gramaticole arrers, ef ewe no hou itt shood bee speled thin yo probly noe wat waz mint, moar dan dis 'E cairs knot.
The present financial crisis was caused by people not properly assessing and valuating risk which on paper at least allowed them to show enormous profits. When it all came tumbling down we were unwilling to allow the entire system to collapse so we could rebuild from scratch.
I agree with some of what your saying, and agree that the nastiest medicine is sometimes what's best... however Americans simply don't have the stomach for that kind of hardship. Instead we'll drag it out and hope we can avoid the complete collapse.
Originally Posted by neutronium_alice
The present crisis was caused by the inflationary activities of the federal reserve, which lead to an increase in consumption and investment not backed by saving, in addition to directing capital to projects which would not ordinarily be profitable. As usual, various interventionist and regulationary policies channeled the money in peculiar ways (such as the housing market), which is what gives rise to the particular distribution of malinvestment. The solution to the present recession is to stop the inflation, regulation, subsidy etc. and let the unsustainable malinvestments collapse and let prices fall so that capital can be liquidated and put into actually profitable (that is, productive) ventures.
Try Richard von Strigl's book Capital and Production or simply google Steve Horwitz on the business cycle.
__________________ LOVE is the LAW!
Disclamer: Awl poastings bye ACougar R subgict two speling and gramaticole arrers, ef ewe no hou itt shood bee speled thin yo probly noe wat waz mint, moar dan dis 'E cairs knot.
The present financial crisis was caused by people not properly assessing and valuating risk which on paper at least allowed them to show enormous profits.
No, that's a secondary effect caused by government regulations that enabled ridiculous amount of leverage. The recession and collapse itself were directly the result of inflation, which caused capital consumption as well as misallocating resources into unprofitable investments.
__________________ "The continued existence of society depends upon private property." - Ludwig von Mises, To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
"Freedom is intrinsically connected with private property." - Erik Maria Ritter von Kuehnelt-Leddihn, To view links or images in signatures your post count must be 10 or greater. You currently have 0 posts.
Did they really encourage a ridiculous amount of leverage or did they simply fail to provide the proper regulations which prevented over leveraging?
People were investing all thier money in homes and then when prices had risen to unsustanable levels the whole thing started crumbling. If that was our only problem though... life would be good. What it did was expose a much larger problem, one that we still haven't fully dealt with IMO.
Originally Posted by neutronium_alice
No, that's a secondary effect caused by government regulations that enabled ridiculous amount of leverage. The recession and collapse itself were directly the result of inflation, which caused capital consumption as well as misallocating resources into unprofitable investments.
__________________ LOVE is the LAW!
Disclamer: Awl poastings bye ACougar R subgict two speling and gramaticole arrers, ef ewe no hou itt shood bee speled thin yo probly noe wat waz mint, moar dan dis 'E cairs knot.
Or do I intend to ever be... But has anyone heard the song " you aint seen nothing yet" Keep printing money out of thin air mr obama and your puppet benny boy. hock our kids future to the chinese your doing a good job there fella. The biggest joke of all uninformed chrisitians voted for this joker!!! y'all need to watch fox news
__________________ And Elisha said, I pray thee, let a doubleportion of thy spirit be upon me
And Elijah answered and said to the captain of fifty, If I be aman of God, then let fire come down from heaven, and consume thee and thy fifty. And there came down fire from heaven, and consumed him and his fifty.
Your statement above makes me think that you are either a special enlightened prophet or you are a self appointed leader of a doomsday cult. As with other cult leaders, you stated that everyone in the western modern world does not know the truth as you do about something; in your case it is the state of the economy. Are you are more enlightened on the truth than anyone in the MODERN WESTERN WORLD?
Secondly you equate yourself with Jesus because He was ignored or laughed at when He gave news straight and plain. Don’t you think that you equating yourself with Jesus is a bit of a stretch?
I think you are overreacting. I said I THINK - most would-be prophets tend so say 'God says...'
What I am saying is that there is such a tendency for people to ignore uncomfortable messages these days that they often laugh at the messenger rather than consider the message. I am not saying that I am equal with Jesus Christ at all. But I am prepared to speak my mind and call things how I see them. It is for you to weigh up my opinions and statements and respond intelligently, not just assume that I am attempting to be some kind of cult figure.
I am speaking from experience though. Often when I call attention to some of the things that are going on in our world that point towards disaster, many people will not even listen. They are too interested in their little world to consider that we may be living through a decisive turning point in history. I am simply saying that my experience with this is somewhat similar to the rejection Jesus experienced when he attempted to warn the Jews of his day of the imminent destruction of their world. (ie. the destruction of the temple in Jerusalem destroyed the ritual worship on which their religion was based.) It doesn't mean I think I am some kind of special prophet.
By the way, prophecy is supposed to be a normal activity for a Christian. (1 Cor 14:1)
__________________
Psa 2:1 Why do the nations plot, and why do their people make useless plans?
Mat 16:6
And Jesus said to them, Take heed, and beware the leaven (lies) of the Pharisees (law makers) and of the Sadducees (ruling classes).
Last edited by whereisthetruth; 3rd October 2009 at 09:03 PM.
An interesting thing is that the ecomists in the UK predicted that the recession was over but the facts say otherwise and that we may have to resthink the stats. So it shows no one really knows
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