Thursday, February 19, 2015

again: elizabeth warren's solution to the crisis of capitalism is market theory. and this is somehow understood as left-wing? she's the textbook definition of a moderate republican. there's a really big problem when a right-leaning liberal republican like her is universally presented as "left". i mean, if this is as far as the spectrum goes then there's no answer to any of the problems in front of us...

the government tends to talk to her like she's an idiot. and, to a large extent, that's the right approach. it's a type of very hollow populism that seems geared for political mileage, but doesn't have any real answers connected to it. and, everybody in the room seems to realize it except the reporters.

lew is right. the size of the institution is not very important. that's what we learned in the 30s. you can split a cartel up, but you can't stop it from oligopolizing. much more radical solutions are required.



Gazzasore
No bail out should happen If a Bank fails close it. Jail the people that cause the problem  Look what Iceland did

deathtokoalas
did you know that, if you did that, then everybody that has their money in the bank would lose everything?

the bailouts were initially a type of social safety net. by setting up a lender of last resort, people can be sure that their money is safe when they put it in the bank. if you take that away, the entire nature of the economy shifts to one where bank runs start happening regularly, and the whole system becomes inherently unstable.

i mean, personally? if i didn't know that my money is safe in the bank through the lender of last resort, i would keep it under my mattress.

we don't need more social darwinism. we need laws that prevent the banks from gambling private savings.

se7ensnakes
Its not american taxpayers that get stuck with the bill, that is a misnomer.  The real people that get stuck with the bail out is anyone that uses money, because now you have inflation

deathtokoalas
this is correct. in fact, what we call "bailouts" are actually low interest loans and, in the end, taxpayers (in the vector of the state) actually make a profit from it.

the most current data suggests that the federal government has profited roughly 50 billion dollars (53.1 billion) on interest paid back on the loans, and there remains outstanding debt to collect. i have no idea where that money goes, but it's probably nowhere good.

the shitstorm is all media bullshit and opportunistic politics.