Politics
Out of context: Reply #5992
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- tommyo0
“But doesn’t the government have to act?” people ask. “We can’t just let financial companies fail!”
I say, “Why not?”
Jim Rogers, the successful investor and author, puts it well: “Why are we bailing out Citibank? Why are 300 million Americans having to pay for Citibank’s mistakes? The way the system is supposed to work [is this]: People fail. And then the competent people take over the assets from the failed people, and then you start again with a new, stronger base. What we’re doing this time is . . . taking the assets from the competent people, giving them to the incompetent people, and saying, ‘OK, now you can compete with the competent people.’ So everybody’s weakened: The whole nation is weakened, the whole economy is weakened. That’s not the way it’s supposed to work.”
- This is the solution that most people can not seem to wrap their heads around.designbot
- Agreed. People see that we have a problem and expect proactive solutions, which might be more harmful in the long run.tommyo
- agreed...the interesting thing is that people seem to think that if these entities are allowed to fail (especially banks) that their assets will vanish into thin air.designbot
- assets will vanish into thin air or something.designbot
- The part that gets me is that if part of the issue is confidence in these companies, how do these current solutions fix that?tommyo
- Right, I think the current market speaks to this fact....people do not trust the government for the solution.designbot
- It hurts confidence, where imo if someone new takes over, with new plans and new capital, it should gain confidence in the co.tommyo
- haha yep, you're right. Still they don't see that after every 'idea' they broadcast the DOW drops 200 - 300 points? Interesting.tommyo
- I love how you equate making changes to drops in the dow, who is to say the dow wouldn't drop anyway? Rise Anyway?DrBombay
- Wouldn't you expect that if it was a plan people believed in that the market would respond positively? I'm not saying thistommyo
- the only barometer, but just look at what happens after every new 'idea' from Paulson and now Geitner. Pretty clear imo.tommyo
- Is it really clear? I'm not so sure.DrBombay
- I guess you don't watch the DOW during and after big announcements then.tommyo
- I think doing that contributes to the problem.DrBombay
- Doing what?tommyo
- it will never go up off of any intervention using this technique, this shit is unprecedented.DrBombay
- I just have a fundamental disagreement with a complete hands off approach.DrBombay
- I do not think the market can figure this out on its own.DrBombay
- Still doesn't change the fact that there is little confidence in our gov ability to 'fix' the economy with their current plans.tommyo
- No I agree with you, the market is reactionary and not an accurate barometer. The only fact is that no one knows the 'fix'tommyo
- What's your 'fundamental issue' with a hands-off approach?tommyo