The Great Clash of '09

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  • Posted By: Lee1010 @ 12/25/2008 9:04:09 AM

    Fascinating comments. I'm just trying to understand the ever expanding meltdown and I learn as much from the comments as I do from the news articles. It seems to me that the new motto of regulation should be to "err on the side of caution", while letting the markets still run.

    • Posted By: olderwiser @ 12/25/2008 9:14:02 AM

      Me, too, Lee1010. The blogs have added a new freedom to the ones we already had. I'd call it some kind of "freedom of participation". It does the same for me that it does for you on the learning curve. There are some really good contributors mixed in with the others. I have put the book recommended just below on my library list. Wouldn't have known about it without this blog.

      • Posted By: Lee1010 @ 12/25/2008 10:06:48 AM

        Your library should have it. If not, Amazon has numerous used copies available from around $3.00 up.

        • Posted By: olderwiser @ 12/25/2008 12:41:20 PM

          Will do. Fareed Zakaria recommemded "The Ascent of Money", Riall Ferguson, recently. Am half way through it and can recommend it, also. Checked it out from the library. It is a 2008 publication and really hits home on today's situation. Cheers, and thanks again.

  • Posted By: jayarr @ 12/25/2008 8:50:57 AM

    Right afterthe latest Wall Street debacle I was prompted to dig out of my library the 1970 classic "A Nation in Torment" by Edward Robb Ellis. This 500 plus page documentation of Big Business greed, Government obeisance to speculation run amok, sloppy regulation, if any, and total alienation of common sense from Congress to common people, is a classic on the cause of the Great Depression of the 20th Century. Every member of the Obama administration, member of Congress, CEO of every large corporation, the Mayor of every city, teacher of civics, economics, and political science, news reporter, and loyal American, should be mandated by the powers of conscience to read this book.

    • Posted By: olderwiser @ 12/25/2008 9:31:12 AM

      Thanks, jayarr. I will see if my public library has this and read it if it does.

  • Posted By: dogboy @ 12/25/2008 7:59:04 AM

    Seems to me that we need to have people like Born, Greenberg, Stiglitz, and others of similar mind keep close tabs on Obama and his financial team. Trust needs to be restored. Obama needs to earn that trust. Positive reviews of Obama's proposed regulations by these critics would work for me.

  • Posted By: wesmenno @ 12/25/2008 6:38:04 AM

    I am afraid Rubin is just going to mess us up again.
    Why did Obama let him back in?
    He's as much to blame for the deregulation abuses as anybody.

  • Posted By: Matador77 @ 12/25/2008 1:23:09 AM

    Having been a commodity trader for more than 30 years, I find the current situation really disgusting. When financial futures were introduced in the '70's there was great expectations but they were based on real or tangible assets that can be settled in cash or actual goods. Futures options were introduced later on and these instruments became more complicated as the nature of the beast evolved. They were no longer under the SEC or CFTC regulations. Still they proliferated and what was lacking was a clearing house to make sure that the parties involved can support their trade positions. If there is going to be any improvement, a "clearing house" should be established to oversee all financial markets. It is also high-time for a federal supervision of insurance and mortgage companies who play in the markets since their activities are as far-ranging as banks, brokerages and mutual funds.

    • Posted By: Cazador1972 @ 12/25/2008 3:52:18 AM


      Good points, alas, that was what regulations in the '90s were all about. For all the boggie-man making of regulations by the GOP, regulations do work. It is no accident that the deepest troughs in markets occur under "unregulated" markets and while recessions are periodic but the deepest ones seem to happen on the GOP watch. Regulations are needed and should be enforced; just like one would not think of having a highway without driving rules, police and emergency services we cannot count on the good conscience of people to drive our economy. Because unfortunately, by the time the "invisible hand" punishes bad businesses, many people who vote and affect government find themselves broke and will ALWAYS call for some sort of government bail-out.

  • Posted By: Magnificencehowe @ 12/25/2008 12:03:20 AM

    Economic chaos are big troubles for everyone in the world, and we will lose job, lose our lives, lose ......

  • Posted By: GeorgeC_74 @ 12/24/2008 11:47:13 PM

    I think some assassinations are in order. Kiss your wife and children goodbye, f \/ cke rs, your time is up.

  • Posted By: sharkman @ 12/24/2008 11:40:47 PM

    What this world needs is a total colapse of all the monitary systems.We need to go back to a barter system our paper money is corrupt and no good.It seems to me in todays upside down world I see the hardest working people making the least amount of money and benifits.Time for all workers to correct this sin.EAT THE RICH EAT THE RICH OUT OF THE PALICE AND INTO THE DITCH.

  • Posted By: rob.hughes @ 12/24/2008 3:36:28 PM

    er... you do realize that the vast majority of the lenders writing sub-prime loans were not covered byt he CRA, no? I thought not, as no thinking person would post such dreck if they had that critical piece of information, since it invalidates entirely the assertion that the CRA was at the heart of the sub-prime melt down. In reality, it was simple greed by lenders, and especially by those writing predatory loans.

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