Socialism at Work In Venezuela

**Crazed Rabbit** · 10-23-2008, 19:27

For the nteenth time, the sub prime mortgage fiasco came from a market heavily distorted by government regulations and benefits to certain companies.

Fannie and Freddie didn't show the failure of capitalism, because they are not free market companies.

EDIT: JAG, that all you got? I was at least expecting some hot air about Chavez standing up for the people and related BS.

CR

**Ice** · 10-23-2008, 20:12

Originally Posted by Crazed Rabbit

For the nteenth time, the sub prime mortgage fiasco came from a market heavily distorted by government regulations and benefits to certain companies.

Fannie and Freddie didn't show the failure of capitalism, because they are not free market companies

CR

Freddie and Fannie weren't the only causes of the global credit meltdown. Your statement isn't correct; a lack of regulation has hurt us too. I would dare to say that less regulation has hurt us more more. Credit Default sweeps and Predatory Lending/Idiotic Loan Taking are two examples of things that need heavily regulated.

PS: Sorry i never got back to you about the other stuff in the meltdown thread. You appeared to be partially right in saying that purchases of the assets wasn't the best idea. A cash injection in the form of direct loans served better.

**Seamus Fermanagh** · 10-23-2008, 20:23

Originally Posted by Kush

Freddie and Fannie weren't the only causes of the global credit meltdown. Your statement isn't correct; a lack of regulation has hurt us too. I would dare to say that less regulation has hurt us more more. Credit Default sweeps and Predatory Lending/Idiotic Loan Taking are two examples of things that need heavily regulated.

There were and are plenty of regulations on the books. Enforcing existing regulations -- and prosecuting fraud vigorously -- is all the system has ever needed. Neither was done assiduously.

"Predatory Lending" should be addressed as fraud. "Idiotic Loan Taking" is a caveat emptor deal. Or are you seriously suggesting that we should somehow "regulate" what financial choices a free citizen makes for themselves?

**Ice** · 10-23-2008, 20:57

Originally Posted by Seamus Fermanagh

There were and are plenty of regulations on the books. Enforcing existing regulations -- and prosecuting fraud vigorously -- is all the system has ever needed. Neither was done assiduously.

Go on about the existing regulation

"Predatory Lending" should be addressed as fraud.

Well it's quite hard to determine what is predatory and what wasn't exactly. If fraud was the case, then it should be prosecuted.

"Idiotic Loan Taking" is a caveat emptor deal. Or are you seriously suggesting that we should somehow "regulate" what financial choices a free citizen makes for themselves?

Yes I am. Some people are simply idiots. You should not be allowed to take out a loan you cannot possibly afford, even if the lender agrees to it. As you have seen, this causes a lot of problems.

**Lemur** · 10-24-2008, 15:55

Originally Posted by Seamus Fermanagh

Or are you seriously suggesting that we should somehow "regulate" what financial choices a free citizen makes for themselves?

Um, don't we do that anyway? Isn't that the reason we put caps on interest rates credit cards are allowed to charge? Isn't that why companies are forced to share information with shareholders? (In a true free market, you would choose between public companies that are transparent and those that are not, and the market would sort it out).

The kids and I love to visit our local socialist center on Saturday mornings.

-edit-

Say, would anyone like to make the argument that loan sharks exist because we "somehow 'regulate' what financial choices a free citizen makes for themselves?"

**Spino** · 10-23-2008, 20:46

Originally Posted by Kush

Freddie and Fannie weren't the only causes of the global credit meltdown. Your statement isn't correct; a lack of regulation has hurt us too. I would dare to say that less regulation has hurt us more more. Credit Default sweeps and Predatory Lending/Idiotic Loan Taking are two examples of things that need heavily regulated.

PS: Sorry i never got back to you about the other stuff in the meltdown thread. You appeared to be partially right in saying that purchases of the assets wasn't the best idea. A cash injection in the form of direct loans served better.

All the regulation in the world cannot redress the problems brought about by an abundance of low IQ stupidity and the fallout from a culture that has inculcated fiscal irresponsibility for the better part of three to four decades.

**Ice** · 10-23-2008, 20:58

Originally Posted by Spino

All the regulation in the world cannot redress the problems brought about by an abundance of low IQ stupidity and the fallout from a culture that has inculcated fiscal irresponsibility for the better part of three to four decades.

I'm a realist and I realize that it will not solve all of problems. However, forward thinking and supervised regulation under experts can go a long way in helping.

I have yet to hear anyone address credit default sweeps. I'd like to hear why people think they need more or less regulation.

Edit: Anyone aware of the Glass-Stegal Depression Era Act? What do you guys think of it's repeal? I'd have to agree it was good exisiting legislation that needed to be tweaked. It basically forbid any one company from being an investment banker, a banker, an insurance agency, and one more that I don't recall.