It's About Wall St. but it's Not All About Speculation

John Weeks: We are not far from the day when government will be smaller than the financial sector

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News & Politics

Tags:

• Wall
• St.
• Speculation
• John
• Weeks
• government
• financial
• sector

[237Michael]

He resumed the whole history: the USA ceased to be a truly productive nation and became a gigantic scam structure where a pernicious minority accumulates - and monopolizes - wealth not by producing goods but rather by speculating. The capital of this country is not Washington D.C. but Wall Street.

[krapptacular]

This whole country is a bullshit story.

[mobilechief]

@237Michael Well said , you put in away that tells it all!

[Benwoodruff]

@TallFastLoud Actually I would not have since as I said it would have occurred after the CDS positions were covered. I won’t keep pounding on your need to read.

The fact that you don’t understand economics (e.g. what a public good actually is) shows in the comment on moral hazard. Feel free to send me an actual message since we are so limited on these comments but you need to learn a bit more if you want to talk about these topics.

[Benwoodruff]

@TallFastLoud AIG held too much risk and was not properly reserved. The problem is not the volume of insurance in the economy. The problem is when the risk is all held by a single firm. That is why insurance have reinsurance contracts or use ART to get the risk off of the books. I never said less regulation. Again you need to start reading what is actually written and not just start responding. The regulators needed to focus on AIG’s exposure and they did not.

[Benwoodruff]

@TallFastLoud You said that social insurance is more efficient (in quotes which makes no sense) and then I was saying that it is not and is only used when insurance markets fail. Price support is not insurance. Just so you know hedging is also not insurance but I think you don’t know what insurance actually means and we will end up talking past each other. A public good is one which is not rival and not excludable. I think you missed something in economics 101.

[TallFastLoud]

@Benwoodruff it also would have crashed the economy. the moral hazard argument from the perspective of utilitarian ethics (ie that of a standard neoclassical economist's) is a total failure.

[mobilechief]

@237Michael Well said , you put in away that tells it all!

[Benwoodruff]

@TallFastLoud Actually I would not have since as I said it would have occurred after the CDS positions were covered. I won’t keep pounding on your need to read.

The fact that you don’t understand economics (e.g. what a public good actually is) shows in the comment on moral hazard. Feel free to send me an actual message since we are so limited on these comments but you need to learn a bit more if you want to talk about these topics.

[Benwoodruff]

@TallFastLoud AIG held too much risk and was not properly reserved. The problem is not the volume of insurance in the economy. The problem is when the risk is all held by a single firm. That is why insurance have reinsurance contracts or use ART to get the risk off of the books. I never said less regulation. Again you need to start reading what is actually written and not just start responding. The regulators needed to focus on AIG’s exposure and they did not.

[Benwoodruff]

@TallFastLoud You said that social insurance is more efficient (in quotes which makes no sense) and then I was saying that it is not and is only used when insurance markets fail. Price support is not insurance. Just so you know hedging is also not insurance but I think you don’t know what insurance actually means and we will end up talking past each other. A public good is one which is not rival and not excludable. I think you missed something in economics 101.

[TallFastLoud]

@Benwoodruff it also would have crashed the economy. the moral hazard argument from the perspective of utilitarian ethics (ie that of a standard neoclassical economist's) is a total failure.