This is the point of Ricter poster link. Some people want to blame government and minorities for all this financial big mess. They take the focus away from the banks for to blame poor people, government, minorities. Really stupid who believe this. For a long time in the USA they have (subprime) loans. What is that? Is loans they give to people with lower income y lower credit score. But with this subprime loan is (higher) interest than the prime rate. And this higher rate to pay by the poorer or minority people is in the risk model. High risk/high premium. This premium is covering risk. But when this banks can go outside of federal regulation to make really big volume of this subprime loans with the no doc, liars loan, alt-a loans, is really so obvious no banks is force to make this loan to poor people. Is really obvious they game the system, really no caring for the long term of their country, and make huge short term money for them.
Okay, enough of the shitz-n-giggles.... I was playing Devil's Advocate, taking the part of the Too Big To Fail company CEO... For every "solution" offered to "fix" the problem, I can probably find a "Free Market" counter-argument - like I've got to be able to offer Golden Parachutes and mega-bonuses to attract the best talent (of course, being in the top position I'd be getting all the perks too, but that's the way it works ) Max E. Pad and Lucrum were even starting to sound like OWS sympathizers. It was like they were suggesting interfering with free enterprise and the executive's right to run the company as he sees fit! BUT - what's the BS component in my argument as Mr Free Market Too Big To Fail guy? Simply that I am using Capitalist arguments to defend Socialism for myself (and my TBTF friends). I want the government to cover by butt and bail me out when I blow up the economy, and I can use the free-market argument against all your (non-capitalist!) suggestions to try and reign me in - and bend you over the barrel as many times as I want. I rest my case.
Oops - typo. Make that - "rein me in." The niftiest trick of all is - if I can get you to defend my free-market socialism while I'm bending you over that barrel.
I intended it as a hypothetical question. Here in the US. Your International competition for talent point taken, though I'm inclined to think it wouldn't be that big a factor.
Bullshit, I am 100% in favour of the free market. People getting paid off, by the government, or the shareholders, after they destroy a company has nothing to do with the free market, thats socialism. That is making someone else pay for your own ineptitude. A person cant say they are for the free market but support Golden Parachutes. The two are polar opposites. I couldnt care less how much a person gets paid, but when a company fails, the person who is running the company also has to fail. No one should get a free lunch.
Exactly. But what is a company that is Too Big To Fail? It is backed by the government. How many of these TBTF CEO's have used capitalist arguments to defend their right to do as they please under the banner of "free market"? They never seem to oppose being TBTF though. Listen to what they say next time they are on the tube (or the commentators who support their arguments). What they are demanding for themselves is - "Free-Market Socialism"
Even just in the US, how would that be done? I wouldn't volunteer for anything like that if I was sitting in the sweet spot of bigger pay and bonuses. Make companies comply? More regulation? That's anti-capitalist. The International part is also why the Spud-Frankenstein Bill is worthless for "unwinding" a TBTF company. Those are international companies. Spud-Funk can't do jack. Maybe the US is embarking on a bold experiment - Build a Capitalist economy on top of a Socialist Banking system.