Derivatives, which derive their value from some asset, (housing for instance,) CAN cause a big mess, if the assets themselves are reflecting false prices. How could this happen, you say? Try artificially low interest rates (Fed), which fueled overinvestment and eventually a crash (half-baked projects, as Austrians would say.) When it was revealed that value placed in housing was false, MBS and other derivatives took a huge hit. Want one person to blame? How about the federal reserve board?
Oh I certainly know your are totally against socialization of the banking sector - that was just a general statment. "Casino capitalism, haha!" I'll give you this, you certainly have a gift for how to shed negative light on this-or-that. Call it what you like, but exposing false prices is a function that must be executed. Unless you're a full-blown Keynesian (sticky prices,) SOMEONE must perform this task. Who do you suggest, if not investors? A new gov't agency?
I will reply at greater length later. Because this relates to remarks made by John Medaille, I asked him for his position regarding regulation.
I also linked up a few blog entries from The Distributist Review (of which he is the admin and I am a contributor) that I think may be applicable. While not outlining the nuts and bolts of how regulation would work, or who would regulate, they point out factors that must be taken into consideration when making such decisions.
Since I last saw you, i thought I'd let you know that free trade is basically irrelevant now. Remember I mentioned how I was mostly concerned with monetary and other financial structures? Thats it now. Monetary policy and other rules pertaining to finance are now THE problem facing the US economy for years, maybe decades to come. Weve made enormous banks into basically wards of the state. Compared to this, trade policy is like a speck of dust. Fight the socialization of Americas banks!
Free trade was never irrelevant. I acknowledged, as I had many times on my program before our conversation, that our monetary policy and fiscal structures suck. But I see a both/and where you see an either/or.
I am certainly opposed to the socialization of our banking system. You ought to know that very well.
Hello my friend. Good videos, except you should be aware that speculators DO play a vital role in the market real asset price correction. No, they are not actually manufacturing real goods, but yes, they are providing a vital service to an economy in which prices are not "sticky."
Spot on the problem is the West USA ,Western Europe and UK, have no real economy,,they have lived in borrowed time for 30 years,,they produced nothing and what is produced is uncompetitive and subsidized. These economies had in decline and will be in poverty in 50-100 years.
world is getting smaller, infastructure have made everything accessable n cheap to develop, relatively, u have huge new economies, like russia, india, china, competing with the us, but worse of all is the EU, americas rise was largely due to the failure of europe, now it has become a country all but in name, u have the euro becoming the dominant currency.... what used america do? take advantage of this crisis, shrink the econocomy, without losing the complete confidence of the world.
this bailout will only delay the certain outcome, but even worse, bc the bubble is getting bigger with all this money being pumped in, the louder the burst, but this atmosphere of continued crisis will allow other economies to pull slowly out of america, rather create more of a need to detache from america than what would be wanted, or even necessary.
Summer is when things will be bad...if the bailouts fail.
wainscottbl 3 years ago
Derivatives, which derive their value from some asset, (housing for instance,) CAN cause a big mess, if the assets themselves are reflecting false prices. How could this happen, you say? Try artificially low interest rates (Fed), which fueled overinvestment and eventually a crash (half-baked projects, as Austrians would say.) When it was revealed that value placed in housing was false, MBS and other derivatives took a huge hit. Want one person to blame? How about the federal reserve board?
labulldog5 3 years ago
Oh I certainly know your are totally against socialization of the banking sector - that was just a general statment. "Casino capitalism, haha!" I'll give you this, you certainly have a gift for how to shed negative light on this-or-that. Call it what you like, but exposing false prices is a function that must be executed. Unless you're a full-blown Keynesian (sticky prices,) SOMEONE must perform this task. Who do you suggest, if not investors? A new gov't agency?
labulldog5 3 years ago
I will reply at greater length later. Because this relates to remarks made by John Medaille, I asked him for his position regarding regulation.
I also linked up a few blog entries from The Distributist Review (of which he is the admin and I am a contributor) that I think may be applicable. While not outlining the nuts and bolts of how regulation would work, or who would regulate, they point out factors that must be taken into consideration when making such decisions.
paleocrat 3 years ago
Since I last saw you, i thought I'd let you know that free trade is basically irrelevant now. Remember I mentioned how I was mostly concerned with monetary and other financial structures? Thats it now. Monetary policy and other rules pertaining to finance are now THE problem facing the US economy for years, maybe decades to come. Weve made enormous banks into basically wards of the state. Compared to this, trade policy is like a speck of dust. Fight the socialization of Americas banks!
labulldog5 3 years ago
Free trade was never irrelevant. I acknowledged, as I had many times on my program before our conversation, that our monetary policy and fiscal structures suck. But I see a both/and where you see an either/or.
I am certainly opposed to the socialization of our banking system. You ought to know that very well.
paleocrat 3 years ago
Hello my friend. Good videos, except you should be aware that speculators DO play a vital role in the market real asset price correction. No, they are not actually manufacturing real goods, but yes, they are providing a vital service to an economy in which prices are not "sticky."
labulldog5 3 years ago
The speculation inherent in casino capitalism is ruinous. Then again, what else would you expect to hear coming from me?
Take issue with John Medaille. He was the guest.
paleocrat 3 years ago
Spot on the problem is the West USA ,Western Europe and UK, have no real economy,,they have lived in borrowed time for 30 years,,they produced nothing and what is produced is uncompetitive and subsidized. These economies had in decline and will be in poverty in 50-100 years.
cathaustralia 3 years ago
Good, solid stuff from a fellow Distributist.
bookstar77 3 years ago
1.
world is getting smaller, infastructure have made everything accessable n cheap to develop, relatively, u have huge new economies, like russia, india, china, competing with the us, but worse of all is the EU, americas rise was largely due to the failure of europe, now it has become a country all but in name, u have the euro becoming the dominant currency.... what used america do? take advantage of this crisis, shrink the econocomy, without losing the complete confidence of the world.
imadhurata 3 years ago
2.
this bailout will only delay the certain outcome, but even worse, bc the bubble is getting bigger with all this money being pumped in, the louder the burst, but this atmosphere of continued crisis will allow other economies to pull slowly out of america, rather create more of a need to detache from america than what would be wanted, or even necessary.
imadhurata 3 years ago