Current crisis is a failure of socialism not capitalism

[tetdragon]

Capitalism creates productive employment and promotes fair exchange. (effort for money).

[georgekostaras]

Capitalism works correctly when companies are closely and reliably regulated. In Canada, our banking system was more heavily regulated than most countries and we're better off.

[jjrglobal]

@georgekostaras

Regulation nisnt what saved Canada, and deregulation isnt what hurt the US. Capitsalism can only work properly when the governemnt is NOT involved, this includes the Federal Reserve

[connorqb17]

what is this a Keynes & Monetary video? Yes there needs to be stable prices, but inflation causes prices to go out of control, you think that by the new printing of more money that prices are going to get stable? The problem happened in 1913. When Woodward Wilson wrote the Federal Reserve act. Wilson even later said it was a huge mistake and felt terrible about it. The problem is the central bank.

[flynn2008]

Road to Serfdom by Freiderick Hayek is my bible.

[dave19941000]

What does what he said have to do with Socialism apart from nothing.

[sfldd]

Basically what this guy is saying is that banks went under because they were forced to give loans to blacks. Is he serious? I don't have the statistics, but I would bet my house that a lot more risky loans were given to whites than blacks.

[calstategop]

@sfldd No he didn't take the race card elsewhere.

[HouseofAtreus01]

I believe it was Franklin Roosevelt that said the only problem with capitalism was capitalists. There is some truth to the fact that individuals in the system are to blame for some of this. Banks made loans to people they knew couldnt pay it back, but then again the people took those loans knowing the same.

So maybe the system is not to blame, maybe the people are. Selfish, lazy and degenerate and ignorant people.

[jjrglobal]

@HouseofAtreus01

I wouldn't take anything FDR said to seriously, considering the harm his New Deal has dealt us for almost 80 years. Fannie Mae is one of his great ideas and is one of the major responsible parties in this crisis. Progressive thinking is what got us into this mess and progressive thinking will only worsen the crisis.

[Guest4000]

Right, right, right... the Community Reinvestment Act is to blame despite the fact that less than 10% of the high coast loans that were issued (which caused the collapse) were issued by CRA regulated banks. On top of that, even the subprime loans that were made by CRA regulated banks, had, on average, lower interest rates than non-CRA regulated banks. Furthermore, CRA-regulated banks were half as likely to resell (securitize) such loans (another contributor to the crisis).

[jjrglobal]

No the CRA is not totally to blame, but the government is. Easy money created by manipulation of the interest rate by a small group independent from the government, along with the implicit guarantee by the government GSE's Fannie and Freddie, and government funding for criminals organizations like ACORN combined with idiotic policy like the CRA created this mess, not the free market. No amount of regulation will ever protect investors, it is up to the investor to protect themselves.

[ExquisiteDoom]

I love the way he puts it, failure of socialism, i didn't see it that way. I'm pro anarcho-capitalism but he makes a very good point, we're already full fledged socialist already. Especially with the federal reserve simply inflating our money away from there is a price distortion. So true.

[aviomaster]

look at just USA car indistry ... they are following goverment regulations to build gas guzzlers when market is telling you ,,, hey hey fuel is 4.70 $  agallon ... hello ...

[RockStudioLive]

Actually, we are on the same side. Socialism has always failed. Free markets must be free of deception and coercion. No body was making sure the bankers were truthful. No body stopped politicians from forcing banks to do stupid things.

[aviomaster]

- USA is not a "FREE market economy " that is the problem ,, Capitalism works everywhere , except USA , WHY ? ,,, CAUSE of USA goverment involment in the economy of USA ,, similiar to CCCP goverment controll of the economy.

[RockStudioLive]

Exactly! We need a free market. Free of coercion and deceit.

[Jaycephus01]

Amiduffer needs to read "Economics in one lesson" by Henry Hazlit. Until then, he won't have the intellectual capital to build an intelligent discussion.

[thomasst2]

Just as good "America's Great Depression" and "History of Money and Banking in the United States", both by Murray Rothbard.

[RockStudioLive]

Iceland is broke. Read the papers.

[swiitboard]

Keep on dreaming. This is not fixable.

[Amiduffer]

..fooled millions of economic illiteracy?? Your enraged state is causing you to babble.

[Amiduffer]

Calm down. Take a deep breath. Relax.

However, if you want to stay in this enraged state, thats fine. Its good for a laugh.

[Amiduffer]

What types of jobs? Manufacturing jobs are of a different, higher quality than retail, service, finance, and so forth. After all, manufacturing is really the only place that actually creates wealth, since it involves transforming nature from raw states into something usefull. On top of that, is the creativity needed in the machine tool designs that bring it all about.

You really have to do something about this rage problem.

[Amiduffer]

What a rage ball. OK, who in the UAW made the decision, and then directed all the other members to sabotage the auto industry with shoddy workmanship? An airline is a company that transports passengers and cargo by jet airplane.

What's your yardstick for measuring economic growth?

[Amiduffer]

Oh, Republicans are really socialists at heart, just with a free market veneer to fool the mickies.

Of course they support Israel. After all, once the pack all the Jews in there and get the big battle going, Jesus is going to rapture them all.

Which union workers decided in the 1970's to make crap?

[Amiduffer]

Oh, yes. The billions of people who once lived off of $1 a day now get $2 a day and folks here who used to get high wages now get minimum wages. Woo Hooo! Yaaaa Globalization!! Let's spread the blame, its Republicans that are more ideological when it comes to the "free market". But, we can also blame nearly everyone in the population with the idiotic "I want to buy things as CHEAP as possible, who gives a shit if its made by virtual slave labor and the quality is crap" mentality.

[thomasdosborneii]

You mean YOU don't shop that way, Amiduffer? Don't kid yourself.

[Amiduffer]

Yes. I don't feel the need of running up insane amounts of debt to buy the latest worthless gadget.

[Amiduffer]

OK, lets take an obvious issue. Since globalization was brought in, in the 70's, where have the majority of manufacturers taken their employment, if they weren't destroyed by Volkers interest rates.

[Amiduffer]

Yes, lets all pray to the gods of "The Market", and magically, everything will happen without any effort by humans. The Republicans are already though.

[jjrglobal]

You are absolutely right. People don't realize how these social programs become crutches that the poor become dependent upon. How many people have you heard "It would cost me my benefits if I go to work"? I actually had a girl quit a while back because she was making too much money and her kids were not going to be eligible for Medicaid and all the other handouts she receives. She said she came out ahead by making less, she didn't know I was going to give her a huge raise at the beginning of yr.

[Amiduffer]

Right, black people should just go back to living in mud huts according to the genius there!

[jjrglobal]

How could you have possibly interpreted this video to mean that?

[Amiduffer]

If this idiot can't even get the date in which the CRA was brought in correct, what good is any of his other advice, beyond that he thinks it a terrible idea that blacks should have access to a mortgage.

[jjrglobal]

He doesn't say the CRA was passed into law, that was 1977 by Carter. He said it was born under LBJ which it was, Fair Housing Act of 1968

[Amiduffer]

Oh. I assume then, that the old slum system was preferable to you. Shame on me for attacking the right of businessmen (slumlords) to make profits off of inhuman living conditions. Bad enough LBJ gave them the right to vote! Imagine, taking someones right to exploit someone away!! No wonder all those crackers went and joined the Republican party.

[thomasdosborneii]

If there weren't slumlords, those people would be living on the street. Oh, and when they were given decent living conditions in the housing projects, look what they did with them--turned them into crime-infested living hells and destroyed them utterly.

[jjrglobal]

If we don't understand how we really got into this mess, we will be destined to repeat the mistakes. You have to realize that any interference into the free market creates a distortion and confuses investors. That is why the market is going down so much lately. Confused investors just pull their cash out and put it into T-bills, which is why the dollar is going up.

[user197a]

This guy has been studying his Austrian Economics. Excellent work.

[jjrglobal]

It is a shame that Austrian economics is not taught as basic economic theory in every school, or at least as an alternative to Keynesian economics.

[Kimbo4Truth]

What did that last dude just say? Get out of here...

[Serge808]

the reason oil spiked to $140 was speculators assumed the US$ could withstand it based on the strength of US economic growth.unfortunately there was way too much money in the system without anything tangible backing it, since gold doesn't back it the expected future output and related US consumption was expected to back it.all the inflated house prices and derivatives from 1980 on hit a fiat issued tipping point.USs real economy has gone to shit foreign investors want their $,=valueless notes

[jjrglobal]

Actually what he says is the legislation was born under LBJ, which it was because the CRA was an extension of the Fair Housing Act under LBJ. As far as Fannie and Freddie, he doesn't say they were created in the 90's, but it was under the Clinton administration that Fannie and Freddie began to expand and become the largest mortgage company, until then the two had a minimal role in the mortgage business. You can't discount what he is saying by nit picking though. Anything else you disagree with?

[toeg1]

Um,

This guy needs to read the facts before stating obvious lies. This CRA act that he blames LBJ for happened in 1977 under Carter. LBJ was dead by then. Then he says, "Step in Fannie Mae and Freddie Mac..." as if they started AFTER LBJ's act. Again, this guy lies. Fannie Mae came into existence in 1938 under FDR and before this clown was even born. This guy tells lies with no facts and pretends that the sheeple will just follow him and never investigate. Sorry, I INVESTIGATE ALL CLAIMS.