He said it wouldn't bother him if the banks were nationalized, because bankers are not supposed to be gamblers and that might be the way to protect banking. It was insteresting to hear that out of a staunch republican pro business guy.
You'll find most free-marketers aren't the brave intrepid souls their tatoo's claim. A couple days ago I read a column of his discussing his confusion about bailouts and markets. Its strange, he seems to be a repository of a lot of arcane information, but somehow is immune to noticing the obvious. Its understandable, people build their expectations around their ability to control events, then faced with the fact that that control is an illusion tend to suggest that even more control would meet their expectations. I think whats going to really shock long time fan's of institutions like ben is the utter contempt the population is beginning to develop for them.
Well said.His notions of the bailout are also very askew from reality.
The solution to the "bailout" is to not6 have a bailout. The real solution is to immediaitely turn all ARMs, Variable rate, option ARM, and interest only mortgages to a fixed interest rate. Cap the ARMS to a maximum of 4% on the upside increase over the life of the loan, and no more than 1.5% per year increase. This keeps people in their homes, not money in the pockets of wealthy, greedy bankers and politicians.
Next is to cap credit card interest rates to a maximum of 10%. Today, companies are allowed to charge up to 25-29% interest with penalties on a credit card statement. This use to be called "loan sharking" when enterprising men from the hood provided the same resources.But legal for unregulated by government banks.
Next, decrease the size of our government by 35%. We are no longer a government of the people by the people. We are government of wealthy people getting richer by leading sheep to the slaughter who don't know any better.Shame on Americans for not using their vote more wisely.
Finally, the ultimate solution for the country's failures; VOTE OUT ALL INCUMBENTS AND HAVE 4 YEAR TERM LIMITS ON SENATORS, CONGRESSMEN AND REPRESENTATIVES. This is the best solution.
ben stein completely changing his tune is a good contrarion indicator
look it is a bear market. bear markets stem from the excesses of bull markets. in this case the excesses stemmed from housing. before it was the dot.com stocks.
so yes just like the bursting of that bubble brought on a recession that lasted a while so has the excesses from this debacle.
what is really that much different between the two.
once this ends and it will, and the economy improves which it will do you really think a group of people wont arrise and try to find a way to create a ponzi scheme to sucker in a new money.
it will just become something else. Renewable energy maybe. a crooked healthcare organization. someone will always dress up in a suit and try to find an easy way to make money,
snake oil salesman have been around since the country was founded.
As a former republican I am very disturbed that there are companies too big to fail meaning we cannot look to them to reign themselves in.
I want the banks so re-regulated it takes a 20 page loan application for a child to get a $10 loan to fund a lemonaid stand.
I am so disgusted with the complete lack of discipline by Fannie and Freddie, lenders, wall street, mortgage brokers, appraisers... the whole lot of them. All should be subject to regulatory oversight and development of standards, tests, continuing education.
This can not ever happen again. Maybe enough regulation will prevent the next financial sector blowup.
reign reign rain REIN (tough choice but it's rein)
All should be subject to ...development of standards (subject to development of standards??? what does this mean)
This can not ever happen again. (Sure it can...or did you mean it MUST NEVER)
Watch me on Fox News!
"I want the banks so re-regulated it takes a 20 page loan application for a child to get a $10 loan to fund a lemonaid stand."
As opposed to the pre-credit crunch situation where 7 banks would take the kids out to lunch and compete for the business, preapprove $10,000 and the FDA would have the kids arrested for opening a stand without a license.
What a world.
"This can not ever happen again. "
Oh yes it can, and it shall. The whole basis for a Capitalistic society regardless of the government structure in power, is the "right" to achieve more tomorrow than what it did today or yesterday. To expand, profit and out perform the competition. To see a boundary as a "goal" in which to meet and exceed.
Even as the republican side has cried over excessive taxation for decades, our capitalist system has expanded and created great wealth over an above any other competing country's or groups of country's on this planet.
I am very lucky to live in the US. It has enabled me to create a small business group that supports several family's and individuals for more than twenty-five years. We (collectively) have sent 12 individual through four year private collages, we have individually bought several property's and built retirements all without a single government incentive, tax break or bailout. We're comfortable. We have the American dream! and we are not related by family ties nor religoen we simply work together.
Capitalism impresses the individual's right to be excessive and denounces a group as a collective. While some of the wealthiest collectives are church/religious groups ( Catholics, Mormons,etc.)that spread their wealth beyond their own boundary's. Corporations for the most part don't !. Their wealthis used to expand or enrich the company. The legal definition of corporation (for profit or non) is " the legal creation to act with the rights and liability's of a person" That credence along with a capitalist drive leads to excess.
The BDC structure and particularly the ACAS governing creed, uses the corporate structure to enhance the company's it invests in as well as the investors that finance their endeavors. That strategy comes from the top down with ACAS.
So long as the loudest voices in our politics promote less regulations, then the more often corporate/individuals will step beyond the ethical boundary in the quest for excessive gains. Once one does it, several will follow until we say stop!.
A locked door keeps the honest.... honest.