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Capital Commerce

ABC News Throws Capitalism Under the Bus

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January 25, 2009 RSS Feed Print
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Only  "massive government help" can save America, says ABC News.

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Dean of Mn,

I carry no loyalty to the the two democrats you named. I think they should go, too. Both of them are in the back pack pockets of the big banks, and their wickedness is better concealed by their smokescreen postures on a number of social issues that appeal to liberals who are merely concerned about over-dramatized causes.

I agree with the fact that the arm-twisting of mortgage lenders may have contributed to this problem, but who was it the argued in favor of deregulating the mortgage industry to legalize securitization? If this hadn't happened, the economic problem would not be a global one.

I'd always thought that "low-risk" mutual funds that consisted of securitized mortgages was one of the stupidest ideas I'd ever heard--and I'm no expert in this matter. But why didn't the government get it? They were too enamored of Greenspan to listen to untarnished reason.

Nova teacher of VA 9:47PM January 26, 2009

"Capitalism" is a loaded word. Try "free markets" or "economic freedom" instead. What people fail to realize is that the consumer (that's us) have the ultimate power over business. When people learn to exercise their economic power rationally, rather than as mindless, marketing-drive consumers; invest their money rationally, rather than chasing the latest investment fad with the highest return; and demand accountability from those we choose to do business with, then our economy will return to stability and prosperity. But it's easier to just ask politicians to save us from our own ignorance and laziness. Take a trip to the DMV to see how well government functions, then expand that competency to the entire economy, and what do you get? The Former Soviet Union.

Jay of NY 2:31PM January 26, 2009

Nova teacher, no one is talking about eliminating government altogether - that's a red herring. Government has a vital role to play in supporting economic activity, but a limited role.

You know what has been irrational the last eight years? Government policy, supported through Freddie and Fannie, to back home loans to people who had little if any hope of paying these loans back, and then insuring these obligations in the trillions of dollars. Had this practice been curtailed early in the decade, as President Bush suggested be done, this whole mess would have been averted.

Irrational is putting crooks like Barney Frank and Chris Dodd, the architects of this disaster, the guys who were in the back pocket of these two GSEs, in charge of fixing things.

Dean of MN 1:10PM January 26, 2009

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