Sure that was a bad situation that contributed to the whole problem, but the inflated value of assets was what made the corruption possible. You can't generate gold between banks, but a fiat currency? Just print more! Overvaluing the movement of assets and betting on it via derivatives? Well there is no tangible basis for value so we can decide upon the value between us! What happens when the bankers realise that they've been selling each other bullshit back and forth for a decade or more? They dump it on the people who ultimately have the liability, and that's us.
What's the Obama solution? Give the exploitative fuckers more cash! What did Bush do in 2001? Cut taxes raised spendign! America went on a spending spree and got themselves into trillions of dollars of debt, savings went into the negative, everyone started borrowing money for housing because their value had been inflated by the bush stimulus that was in it's self a recovery package for the dot com bubble created under Clinton. What economic model would have let the system take a hit and balance it's self the first time? The Austrian model.
You know what model would have seen Freddie, Fanny, Goldman etc get their asses handed to them via bankruptcy? The Austrian model. Instead the US govt spends another trillion dollars trying to coax the economy and further fucking up equilibrium getting the country further into debt, all to bail out the same fuckers who, with government security guarantees generated by imaginary value, started buying up bundles of toxic assets, getting their friends to give them AAA credit ratings. Everyone knew they were fucked, but the government was a guarantor, so unlike a free market where nobody would have touched these fucking things because they would have bee risking their own capital, they were gambling with the base value of the dollar and taxpayer money!
You would accept under other circumstances that the predictive power of a model is representative of it's efficacy no? Yet when it's an economic model that seems to best account for economic balance even under a different system it's like the predictive power of the model doesn't matter one fucking bit.
And let's be perfectly clear here, the US hasn't run anything like an Austrian model since Regan who destroyed it along with the Gold standard, it's been the Keyensian model the whole time.
Every move any regulator makes changes the balance between supply, demand, expenditure, savings and assets etc. It's not necessarily bad, some economic regulation is necessary, mostly in terms of judicial measures for those found to be misleading or fraudulent, but what you end up inevitably doing is obfuscating the real value of the economy, creating bubbles, lowering production and you go from boom to bust all while increasing foreign debt and requiring you send inflation skyward to recoup which it's self is a domino effect.
The US now owes 14 Trillion fucking dollars because they were spending under the illusion of inflated values created by a lack of a tangible comparison. Yeah the greedy fuckers need to be dealt with, but you might as well fix the plainly broken monetary model while your at it, and why not use the model that has had the most success in predicting the rise and fall of and relationship between the various factors? Economies are a fine balance that swing back and forth, it's only when you put strenuous pressure on one aspect that the balance throughout becomes effected and equilibrium is lost.
http://www.youtube.com/watch?v=EgMclXX5m...re=related
What's the Obama solution? Give the exploitative fuckers more cash! What did Bush do in 2001? Cut taxes raised spendign! America went on a spending spree and got themselves into trillions of dollars of debt, savings went into the negative, everyone started borrowing money for housing because their value had been inflated by the bush stimulus that was in it's self a recovery package for the dot com bubble created under Clinton. What economic model would have let the system take a hit and balance it's self the first time? The Austrian model.
You know what model would have seen Freddie, Fanny, Goldman etc get their asses handed to them via bankruptcy? The Austrian model. Instead the US govt spends another trillion dollars trying to coax the economy and further fucking up equilibrium getting the country further into debt, all to bail out the same fuckers who, with government security guarantees generated by imaginary value, started buying up bundles of toxic assets, getting their friends to give them AAA credit ratings. Everyone knew they were fucked, but the government was a guarantor, so unlike a free market where nobody would have touched these fucking things because they would have bee risking their own capital, they were gambling with the base value of the dollar and taxpayer money!
You would accept under other circumstances that the predictive power of a model is representative of it's efficacy no? Yet when it's an economic model that seems to best account for economic balance even under a different system it's like the predictive power of the model doesn't matter one fucking bit.
And let's be perfectly clear here, the US hasn't run anything like an Austrian model since Regan who destroyed it along with the Gold standard, it's been the Keyensian model the whole time.
Every move any regulator makes changes the balance between supply, demand, expenditure, savings and assets etc. It's not necessarily bad, some economic regulation is necessary, mostly in terms of judicial measures for those found to be misleading or fraudulent, but what you end up inevitably doing is obfuscating the real value of the economy, creating bubbles, lowering production and you go from boom to bust all while increasing foreign debt and requiring you send inflation skyward to recoup which it's self is a domino effect.
The US now owes 14 Trillion fucking dollars because they were spending under the illusion of inflated values created by a lack of a tangible comparison. Yeah the greedy fuckers need to be dealt with, but you might as well fix the plainly broken monetary model while your at it, and why not use the model that has had the most success in predicting the rise and fall of and relationship between the various factors? Economies are a fine balance that swing back and forth, it's only when you put strenuous pressure on one aspect that the balance throughout becomes effected and equilibrium is lost.
http://www.youtube.com/watch?v=EgMclXX5m...re=related
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