Re: [asa] Re: Deregulation Madness was Re: Ben Stein on Sub Prime Mortage Crisis...

From: John Walley <john_walley@yahoo.com>
Date: Mon Dec 08 2008 - 08:35:43 EST

I think it is fair to say there is enough blame to go around for both sides. The problem is the govt got manipulated by both parties into a position where it was compromised between trying to help poor people and at the same time being a backstop for the private mortgage industry. It should have done one or the other and been regulated accordingly but not both.

This quote below seems to crystalize it the best.

`It is a classic case of socializing the risk while privatizing the profit. The Democrats and the few Republicans who oppose portfolio limitations could not possibly do so if their constituents understood what they were doing.''

This whole episode appears to vindicate the following quote attributed to the 18th century Scottish historian Alexander Tyler:

"A democracy cannot exist as a permanent form of government. It can only exist until the voters discover that they can vote themselves money from the public treasure. From that moment on the majority always votes for the candidates promising the most money from the public treasury, with the result that a democracy always collapses over loose fiscal policy followed by a dictatorship."

John

--- On Mon, 12/8/08, Lynn Walker <lynn.wlkr@gmail.com> wrote:

> From: Lynn Walker <lynn.wlkr@gmail.com>
> Subject: [asa] Re: Deregulation Madness was Re: Ben Stein on Sub Prime Mortage Crisis...
> To: "Rich Blinne" <rich.blinne@gmail.com>
> Cc: "John Walley" <john_walley@yahoo.com>, "AmericanScientificAffiliation" <asa@calvin.edu>
> Date: Monday, December 8, 2008, 12:43 AM
> On Sun, Dec 7, 2008 at 10:56 PM, Rich Blinne
> <rich.blinne@gmail.com> wrote:
>
> >
> > ...In defense of Ben Stein, he has learned from some
> of his mistakes,
> > namely that deregulation has been a collosal failure.
> First some history of
> > the deregulation disaster promoted by both parties in
> the last decade,
> > albeit mostly by one.
> > The Commodity Futures Modernization Act of 2000 did
> at least two things.
> > It allowed the now infamous credit default swaps to be
> sold in so-called
> > "dark markets" and it also introduced the
> so-called Enron Loophole. .....
> >
> For other details - there's this:
> http://newsbusters.org/blogs/noel-sheppard/2008/06/20/olbermann-blames-mccain-bipartisan-clinton-signed-enron-loophole
>
> and this:
> *How the financial crisis was created
> Bloomberg.com*
> http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSKSoiNbnQY0
>
> and this:
> *Should Congress Be 'Perp-Walked'?
> *
> http://www.investors.com/editorial/editorialcontent.asp?secid=1501&status=article&id=307667278225125
>
> Lynn

      

To unsubscribe, send a message to majordomo@calvin.edu with
"unsubscribe asa" (no quotes) as the body of the message.
Received on Mon Dec 8 08:36:27 2008

This archive was generated by hypermail 2.1.8 : Mon Dec 08 2008 - 08:36:27 EST