Market Meldown

[senseinobaka]

akuma587 said:

senseinobaka said:

akuma587 said:

 

Yeah, well I mean we are faced with two shitty alternatives, let the market correct itself and have everyone in the financial sector shit a brick when mass defaults on loans occur, or try to ease the transition by bailing out a bunch of people who in no way shape or form deserve a bailout (especially the idiots who accepted a variable interest rate and now can't pay).

So either way we are pretty screwed, and will be screwed for several months if not years.

 

Both options are not great, but one leads to more problems. We have a situation here where these banks and investment houses have thrived and advocated for a free market. And now that the free market is telling them to go screw themselves, they cry for government help. It doesn't work like that.

Even worse, bailing out businesses that fail causes more problems down they road. To name one, it gives no incentive to correct or fix the problem. To name another, smaller more innovative organizations (read: less corrupt and more responsible) are not given the chance to fill in the gaps, instead they are obstructed by government intervention.

 

The free market actually caused this problem, you know, because there weren't enough government regulations on unscrupulous lending practices.

 

I think you have that wrong. This correction (read failure) is a free market function. Unscrupulous lending practices do not last long in a free market and the free market eventually rips a new anus into corporations that practice them. Now, I dont agree with economic fascism (fascism = government legislative control of private business and property, it's different than socialism which is government seizure of private business and property), so I definately dont think the government should dictate how a business uses it's own money, but I dont think the government should protect the business from the consequences of using their own money unwisely. Facist policies have been shown to be more damaging in the long run than the free market. Just think about it, how often do you hear about large free market businesses failing compared to large businesses in a fascist market. Compare financial institutions to airlines for starters.