Politics
Out of context: Reply #12036
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- ukit0
Confused argument. You need to update the rules of the game (write new laws) to accommodate technical innovation in the markets. If Goldman Sachs or J.P Morgan economists invent some new way to securitize loans that is profitable to a few but dangerous to the economy as a whole, it's completely within the authority of the government, should be their responsibility in fact, to write rules outlining how those companies should be able to use these new instruments. Just like when the web came online, or the mobile phone market sprouted up, we needed new laws to regulate how companies could do business on it.
Those are regulations. The people who actually REGULATE, the ones administering the laws, have some responsibility, sure - but without a sensible, modern regulatory framework to work within, they aren't going to be able to be effectual.
Now what does this mean specifically? One of the biggest problems with the financial market is the degree of leverage companies were allowed to spin off of risky loans. They took the money invested on the original loans and releveraged it 10, 20, 30 times over, to the point where the amount derived from the original investments vastly exceeded the actual amount of real activity in the economy. That's why the fall was so brutal when the housing market crashed - it was like a set of Jenga blocks (or house of cards) falling as you pulled out the first block. So getting that leveraging back to a sensible level is, I think, something Obama is trying to do.
I mean, do you actually have a problem with any of that, or are you just trying to go off on some kind of right-wing sulk here?:) I don't really get what you are against.
- You can only play the Left vs Right game. I would bet your bitter because you don't material items like a rapper.********
- You can only play the Left vs Right game. I would bet your bitter because you don't material items like a rapper.