The thing people don't seem to be getting about the shock doctrine, isn't that the government causes the shock. But takes advantage of the shock. Banking collapse is not an example of the shock doctrine. The bailout is an example of the shock doctrine.
I never said that the government doesn't take advantage of the shock. What's going on right now in our financial rules and the sudden moratorium on short selling is parallel to what the government did to our personal liberties after 9/11. They're using the crisis to consolidate power.
Given that the government can consolidate so much power from a banking collapse...is it so farfetched to think that they could indirectly cause it as well?
By the way, you are speaking only of the prime rate. Banks lend out money at higher rates all the time. Car loans, credit card loans, etc. You can't really blame this on the FED.
That's true, and it makes the moral hazard relating to predatory lending all the more evident. If the going rate for loans to the consumer is 7% or 8% or whatever, but the money supply you have access to from the fed is only at 2%, then you'd have a real big incentive to hand out loans like candy because your profit margin is pretty high.
The problem is a deregulatory philosophy and the concept of tricle-down economics. Klein is not right, but the conservative movement is largely responsible for these issues.
the democrats enabled Freddie Mac and Fannie Mae as much as the republicans did. There is no competent party in US politics. Everyone is either incompetent or corrupt. In fact, the real difference between the two parties in this country is just surface presentation. In reality, republicans and democrats all do the same shit. That's why America is f-u-c-k-e-d
The thing people don't seem to be getting about the shock doctrine, isn't that the government causes the shock. But takes advantage of the shock. Banking collapse is not an example of the shock doctrine. The bailout is an example of the shock doctrine.
johnedwards1968 3 years ago 4
I never said that the government doesn't take advantage of the shock. What's going on right now in our financial rules and the sudden moratorium on short selling is parallel to what the government did to our personal liberties after 9/11. They're using the crisis to consolidate power.
Given that the government can consolidate so much power from a banking collapse...is it so farfetched to think that they could indirectly cause it as well?
SJSR45 3 years ago
By the way, you are speaking only of the prime rate. Banks lend out money at higher rates all the time. Car loans, credit card loans, etc. You can't really blame this on the FED.
johnedwards1968 3 years ago 2
That's true, and it makes the moral hazard relating to predatory lending all the more evident. If the going rate for loans to the consumer is 7% or 8% or whatever, but the money supply you have access to from the fed is only at 2%, then you'd have a real big incentive to hand out loans like candy because your profit margin is pretty high.
SJSR45 3 years ago
The problem is a deregulatory philosophy and the concept of tricle-down economics. Klein is not right, but the conservative movement is largely responsible for these issues.
johnedwards1968 3 years ago
the democrats enabled Freddie Mac and Fannie Mae as much as the republicans did. There is no competent party in US politics. Everyone is either incompetent or corrupt. In fact, the real difference between the two parties in this country is just surface presentation. In reality, republicans and democrats all do the same shit. That's why America is f-u-c-k-e-d
SJSR45 3 years ago