.. will the government allow companies to fail, allow capitalism to work? The real test here is whether the US is the capitalist society it claims to be. If the FED starts bailing out companies/lenders/etc it just shows how much we have moved away from being a society based on merit.
I agree. If this is the way we are going run the world then there really is no reason to keep paying bills because there will always be a bailout. I think the system is failing.
when central banks conduct timed injections or loans to failing overleveraged institutions, who's losing the p&l that the failing institutions are recovering? it doesn't seem fair that banks and funds who were allowed to use gargantuan amounts of leverage to muscle money out of the market then get coddled by central banks during failure. just seems like the central banks are there to facilitate non free market excesses for certain players at both ends, on the way up and the way down
well if we do bail out these firms, I suggest we just go ahead and nationalize all the banks, and then we can pay the wall street guys mid level government salaries like mail men.
So far, the Fed indicated it was ready to release liquidity as needed into the system, but said nothing about cutting rates. Liquidity injections into the system for overnight or three day terms isn't all that bad. Actually it rather highlights the problems we're having. Cutting rates, however, puts us right back where we started from. Turning on the faucets.
âA lot of people like to say, uh, scaremonger about China, right? A lot of politicians, and I know you talk about that issue all the time. I think people should be careful what they wish for on China. Ya know, if China were to revalue itâs currency or China is to start making say, toys that donât have lead in them or food that isnât poisonous, their costs of production are going to go up and that means prices at Wal-Mart here in the United States are going to go up too. So, I would say China is our greatest friend right now, theyâre keeping prices low and theyâre keeping the prices for mortgages low, too.â Erin Burnett on Friday's Harball with Chris Matthews. Nice to know we have free market competition and can buy our toys from other countries like, like, like..... nope only China and SE Asia. The commies have figured out the capitalist (American) way: produce crap, sell crap, profit. Of course if there is a lawsuit, then get some lobbyists to get caps on these suits so the cost of negligence can be calculated into any future fraudulent endeavors.
It does not claim to be a capitalist society, it is a welfare state because of the problems of pure capitalism a.k.a. wolf capitalism experienced during the Industrialization Age. US does claim to have the most evolved system close to the ideal "free market" due to government oversight. What exactly makes any of you believe that in a "capitalist society" the big players would not support each other and rub each other's backs. Correct me if I am wrong, but all the major power players of the early 20th century were buddy buddy with each other and created a lot of exclusive deals among each other. The Fed is a private corporation, the government oversight is just a dog & pony show. So no, the US government is not bailing anyone out, the Fed is doing as it chooses by the processes that it chooses. The US government cannot make the Fed do anything short of radical reconstruction of the money system. I am sorry, but you cannot complain about the loss of the capitalist nature when these are private interest at work, not public or socialist. The only real difference is that in pure capitalism, most of these entities would simply tell you & the people to "shut the f**k up and mind ur own business" (maybe in less crude terms) instead of creating a whole mountain of news, analysis & literature.