richardhutnik said:
And yes, no one happened to either see that Madoff also was doing stuff no one could see either. Shame that the government was responsible for him and put a gun to people's head and order them to invest with him. Same with Long-Term Capital Management. Yep, the government was all behind that. And all those Ponzi schemes, autosurfs and other nonsense that the government is behind these big bad entities to the extent that NO ONE has the power to stop it, because the government forces such leveraging. http://en.wikipedia.org/wiki/Long-Term_Capital_Management The idea of a hedge fund, and what derivates are supposed to do is protect you not against the normal, but against the really odd stuff that is catastrophic. That is what it will do, but when you end up with inane groupthink, that happens in markets, as is CLEARLY show in the experiment, then it doesn't work. You aren't using hedging as a chance to minimize loss, you are using it to take risks you wouldn't normally, because you believe the math is foolproof, or you need to keep up with the Joneses, because if you don't show the same absurd rate of return as others are doing, then end result is that lose your job. Well, the guys who ran this overleveraging make out like bandits and take down the banking system. But hey, keep believing the government did it, and ONLY is the one to cause it to happen. No way EVER do bubbles happen which aren't due to government holding guns to people's heads and telling them to leverage. The thing about moral hazards is the people who do them still did the stupid thing. If you want to lay fault on the government here, it is for providing a climate where there was too much money floating about that drove people to dumb things. |
So in otherwords, you have no actual way to argue the point and are trying to bring in unrelated pyramid scams to try and conflate the arguement to support your point.
Again, the math failed because of a state of the market hereto thought impossible.
You instead are blaming the market, for not prepairing for something that just about everyone would of agreed was unniversally impossible before it happened....
rather then government for creating such an occurence.
That's not even blaming the market for lava insurance.
It's more like blaming the market for having over leveraged in the case of dragon attack.
Though if you want to blame the market for that sure, they could of not levereaged vs the hereto thought impossible thing, then we'd of never had the crash because the economy wouldn't of even been as good as it is now, so there would be nothing to correct against since derivatives are the only reason the global economy was able to drive so high in the firstplace, the derivatives market being worth more then the actual cash of the nations in the world.
You think it's bad when 1.5 trillion is in buisnesses unused? How about when many more trillions don't even exist anymore or never did.
