Welcome to PatsFans.com

The Bailout Reader

Discussion in 'Political Discussion' started by patsfan13, Feb 15, 2009.

  1. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

    Joined:
    Jan 4, 2005
    Messages:
    25,175
    Likes Received:
    122
    Ratings:
    +308 / 9 / -12

    A series of articles about today's financial mess. The articles go back to the 90's. A great background for those who want to understand what has happened.

    The Bailout Reader - Mises.org - Mises Institute


    An excerpt from an article (1999) on the harmful effects of government regulation and how gov extorts money from the private sector. The excerpt concerns the CRA.





    This article was written in 1999 and foresaw the disaster that the CRA would cause in the mortgage markets.
     
  2. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

    Joined:
    Sep 13, 2004
    Messages:
    18,434
    Likes Received:
    227
    Ratings:
    +353 / 15 / -12

    The banks ought to take personal responsibility for their failures. We live in system of competition commonly known as capitalism, and in that system competing interests try for their share of the pie. In taking the excerpt you provided at face value, it merely shows that the banks ultimately failed to successfully navigate the competition from community groups.

    Had banks done more for public service rather than pad the pockets of their executives, they would have built good will and greater support among community groups. Your post is a classic example of conservatives trying to avoid personal responsibility and stifle the competition. The banks were never mandated to make bad loans; they chose it because it was easy to do.
     
  3. sdaniels7114

    sdaniels7114 Experienced Starter w/First Big Contract

    Joined:
    Jan 2, 2006
    Messages:
    5,742
    Likes Received:
    7
    Ratings:
    +7 / 0 / -0

    I have trouble blaming the banks. Bankers are naturally cautious people. Everything from the old, grumpy-looking men in charge to the Greek-inspired architecture commonly associated with banks says stability and sense. It wasn't easy to turn them into flighty teenage girls swooning over every last money-making opportunity the way actual teenage girls swooned over Mark Walberg back in the day.
     
  4. Michael

    Michael Moderator Staff Member PatsFans.com Supporter

    Joined:
    Dec 30, 2004
    Messages:
    9,019
    Likes Received:
    18
    Ratings:
    +23 / 0 / -0

    #12 Jersey

    Uhm yeah, if they were allowed to act as capitalistic companies instead of what the Democrats forced them to do with red lining and forcing sub-prime mortgages. They wanted to give everyone a house and now we all have to pay.
     
  5. Patters

    Patters Moderator Staff Member PatsFans.com Supporter

    Joined:
    Sep 13, 2004
    Messages:
    18,434
    Likes Received:
    227
    Ratings:
    +353 / 15 / -12

    They weren't forced to do anything, and they were never encouraged to make bad loans except in the sense that deregulation gave them more latitude. Funny how conservatives talk personal responsibility, but then blame government for corporate America making bad choices.
     
  6. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

    Joined:
    Jan 4, 2005
    Messages:
    25,175
    Likes Received:
    122
    Ratings:
    +308 / 9 / -12

    There are a whole series of articles, while there was no doubt greed much of the greed component was driven by the belief that the gov would bail them out...which is also documented at the articles linked above.

    To deny the government was strong arming the banks is looking at the world through pink dem glasses, especially given the fanatic opposition to reform by people like your heroes Dodd and Frank.
     
  7. Michael

    Michael Moderator Staff Member PatsFans.com Supporter

    Joined:
    Dec 30, 2004
    Messages:
    9,019
    Likes Received:
    18
    Ratings:
    +23 / 0 / -0

    #12 Jersey

    Keep telling yourself that.
     

Share This Page

unset ($sidebar_block_show); ?>