Moral Hazards and Happy Meals for the Circle Jerk

[HowardRoark]

I have been informed that this place is nothing more than a circle jerk for Conservatives. To that end, I would be interested in what the Conservatives think on a couple of issues.

1. Do you think that there should have been more Government regulation in the mortgage business over the past few years? Should the Fed not have provided a backstop to the toxic Bear Stearns debt so that JP Morgan could take them over? Should the “invisible hand” be left alone in times like this; Freddie, Fannie, etc.?

2. What about consumerism run amok? It cracks me up when I have to debate someone on Capitalism v. Socialism. Capitalism works. I wonder about what the outcome is when Capitalism really starts clicking on all cylinders as it now has in a worldwide market since the fall of Communism. I had to build another room in my basement for all the cheap shit from China that my kid’s grandparents bring over all the time. Hell, you can’t even eat at McDonalds without leaving with some kind of trinket. Do we as U.S. citizens have to come to the realization that the “salad days” of Capitalism are when a society is building a middle class?
BTW, Ty…if you are out there, did you know a guy named David Einhorn in high school?

[mraynrand]

Re: Moral Hazards and Happy Meals for the Circle Jerk

did you know a guy named David Einhorn in high school?

I knew his sister, Lois Einhorn. She looked a little like the placekicker Ray Finkel - or Sean Young.

[Scott Campbell]

Re: Moral Hazards and Happy Meals for the Circle Jerk

.........cheap shit from China.........

It ain't just cheap shit anymore. Even the expensive stuff can come from there now, though it's cheaper from them than from the usual suspects.


And what the hell is a pivot man?

[mraynrand]

Scott: What the hell is a pivot man?

[Harlan Huckleby]

Re: Moral Hazards and Happy Meals for the Circle Jerk

Should the “invisible hand” be left alone

is this one of the circle games?

[Iron Mike]

Spaulding, get your foot off of the boat!!!!!

[HowardRoark]

Re: Moral Hazards and Happy Meals for the Circle Jerk

Should the “invisible hand” be left alone

is this one of the circle games?

You're the one talking about your carpal tunnel.

[Freak Out]

I'm an Alaskan liberal which some might call a Libertarian....here goes.

1. When Congress called for Greenspan and his ilk to come up with mortgage regs/oversight in the late 90s it should have happened but he felt none was needed and the issue was dropped.
There is not a chance in hell of the Fed Gov letting Freddie and Fannie die....we would see a global meltdown. What are we talking here..? Three trillion in debt held by the two? There is no fucking way we let them slide. Bear Stearns was another of the necessary evils that had to be helped....the consequences could have been double fugly. I hate to see our tax dollars used this way but not doing so would cost us much more in the long run.

2. Ugh.....my head hurts and I need a drink.

[Scott Campbell]

I'm an Alaskan liberal which some might call a Libertarian....here goes.

1. When Congress called for Greenspan and his ilk to come up with mortgage regs/oversight in the late 90s it should have happened but he felt none was needed and the issue was dropped.
There is not a chance in hell of the Fed Gov letting Freddie and Fannie die....we would see a global meltdown. What are we talking here..? Three trillion in debt held by the two? There is no fucking way we let them slide. Bear Stearns was another of the necessary evils that had to be helped....the consequences could have been double fugly. I hate to see our tax dollars used this way but not doing so would cost us much more in the long run.

Bingo. I told my kids it would there would have been a run on the banks, just like the one they watched in It's a Wonderful Life.

[HowardRoark]

I'm an Alaskan liberal which some might call a Libertarian....here goes.

1. When Congress called for Greenspan and his ilk to come up with mortgage regs/oversight in the late 90s it should have happened but he felt none was needed and the issue was dropped.
There is not a chance in hell of the Fed Gov letting Freddie and Fannie die....we would see a global meltdown. What are we talking here..? Three trillion in debt held by the two? There is no fucking way we let them slide. Bear Stearns was another of the necessary evils that had to be helped....the consequences could have been double fugly. I hate to see our tax dollars used this way but not doing so would cost us much more in the long run.

2. Ugh.....my head hurts and I need a drink.

I think it's around 5-6 trillion. I agree with you on the two of them, they can't fail.

Indymac bit the dust tonight.

Look where the heroic Greenspan landed:

http://www.nakedcapitalism.com/2008/01/greenspan-to-join-hedge-fund-paulson-co.html

[Freak Out]

I heard about Indymac this afternoon. Scary stuff...people were draining it until the "authorities" stepped in.
These are some ominous signs my Packer loving friends.

[Freak Out]

Thanks a damn good blog Howard....thanks.

[mraynrand]

If FM and FM get 'bailed out' it's essentially a 'loan' from the government. All that means is that they 'make' more fiat currency with the end result being that the dollar is devalued even more. So it's like this massive hidden tax in that every goddamn dollar is worth less than it was the day before. That's the way I see it - did I miss something?

This whole thing stinks like shit. It's a frickin' snowball effect. People with bad loans default, housing in general gets devalued; they bail out Bear Stearnes, the dollar gets more devalued. Now responsible people with decent loans find that their homes are worth far less than the loans - so why keep paying? Add to that outrageous gas prices that are shooting up because there is no supply increase on the horizon and you have a 'perfect storm.' The Congress should authorize off shore and ANWR drilling and push it immediately - it's bad enough that supply is pushing prices, but futures are all out of whack too. Increase fuel costs even more, devalue currency, and lot more people are going to walk away from their homes. KABOOM!!!!

[bobblehead]

This wasn't a circle jerk for conservatives when I got here. I actually engaged liberals quite a bit, but they get really pissy when they can't pull the same old crap over and over and try to shame you into submission. Tank and hoosier have pretty much disappeared and what we are left with is those who don't really debate and those who only think they are debating but can't let go of that liberal tactic of saying we are all closed minded so and so's therefore no matter how bad we bury them with logic it doesn't count.

[Freak Out]

This wasn't a circle jerk for conservatives when I got here. I actually engaged liberals quite a bit, but they get really pissy when they can't pull the same old crap over and over and try to shame you into submission. Tank and hoosier have pretty much disappeared and what we are left with is those who don't really debate and those who only think they are debating but can't let go of that liberal tactic of saying we are all closed minded so and so's therefore no matter how bad we bury them with logic it doesn't count.