Stiglitz: The subprime problem just beginning!

"Even hard corp free marketers understand that the derivatives market should've always been banned - Dr. Paul has said the same." -

I don't know how banning something aligns with 'free market' notions. Is there some way that's not a complete contradiction?

because there has to be a piece of property to exchange for money, and in the case of derivatives, there isn't actually any property that one can say "yep, that piece there is mine"...you can't have a market that is purely speculative...I never said I was a hard corp free marketer anyway. I happen to like stiglitz, but believe in a laissez faire economic policy -- there is no contradiction. No need to give me history lessons either, b/c I am aware of my positions and the subtleties therein

free market was great while it was earning dividends for people, and now, when people speculated badly in the derivatives market they are quick to turn on the system for not protecting them from themselves. cry baby bullcrap -- so you want govt to regulate what you can invest in so your investment advisor can't lose your money, eh? how bout being accountable -- bad investments with high risk, often lead to great losses. Then we learn our lesson, and quit investing poorly...we'll never learn now

"free market was great while it was earning dividends for people, and now, when people speculated badly in the derivatives market they are quick to turn on the system for not protecting them from themselves." -

Funny - that's precisely what Stiglitz is and has been saying. Human nature delivers what we have now - a total lack of street signs and traffic lights.

The whole problem of the crisis was that investment and rating of investment has become a joke. You cannot blame people for believing investment in triple A funds will guarantee them people don't invent in risky loans and such. The regulation in these areas is responsible.

well...I like how you lay the blame anyway. peas

Also, the austrian brand economic began much longer ago in austria (or sooner somewhere else perhaps)... I have been looking to history, and I think the "School" of thought out of chicago is more nuanced than you're making it out. Friedman and Keynes weren't on the same page at all, and we are reaping the "fruits" of a keynsian system (deficit spending w/ fiat currency). The problem with regulation is that we have corrupt governmental representation, therefore I don't trust them to regulate.peas

The Austrian school (Psychological School) was basically brought into its current form when Carl Menger's Principles of Economics (1871) was published though it had earlier roots going back to the 1400s. It's a school of thought based on ideology as much as empirical evaluation.

mises,org/etexts/austrian,asp