Re: Is horse chestnut wood good for anything?

Robatoy wrote:

When lending money was unregulated, the insurance of same was also
unregulated, the fox ate the chicken. (Eskimo fable) You cannot trust
greedy people who use money to keep score of their 'success'.

<Time For A Reality Injection>

Sorry, but you are dead wrong about several things in this paragraph:

1) Money lending is not unregulated. Banking is a fairly regulated
industry throughout most of the West anyway.

2) Ditto insurance - also a regulated industry, in the US it is done
primarily by the States.

What went wrong here was multiple course of *government* intervention
of the worst kind:

1) The U.S. government - in the form of its political rectal warts
like Carter, Clinton, Frank, and Dodd - *distorted* market behavior
by insisting that banks lend to borrowers who absolutely could not
qualify under normal rules. They did this by promising the bankers
they could keep the upside of such lending, but that "the government"
would protect them from the downside when such borrowers defaulted.
This created a perverse incentive for the banks (and AIG as their
mortgage default insurance company) to take lots of risk knowing
they'd never have to eat the downside. IOW, the very *regulation*
that required banks to set lending standards when qualifying
borrowers was *thwarted by the repulsive leftwing social justice
idiots in government.* It was not a *lack* of regulation that
caused it. It was the banks being *forced to ignore the regulation*
by their own government that caused the problem.

2) When the silliness of the banks became evident, the *government*
stepped in to try and save them from their bad decisions on the
grounds that they were "too big too fail." Evidently, neither
Bush nor the Obamessiah actually believe in market economies
and could/can not comprehend that letting the banks/AIG fail is
*exactly* what is needed here to clear all those toxic assets off
their books in a bankruptcy proceeding.

The banks/AIG acted foolishly and should have been left to their
own recovery.

W acted stupidly and prematurely and is properly condemned for his
ridiculous bailout spending.

Obamessiah is acting *purposely* and with great malice toward market
economies so as to install his socialist idiocy. He has managed to
sell this as the bank's fault to the sheeple (as have his communist-lite
fellow travelers around the world) while managing to keep most of
the spotlight off the evil little trolls like Carter and Frank who
actually precipitated the root causes of this whole mess.

The good news is that money and economies are neither neocon nor
drooling-idiot liberal institutions. Economies happily ignore
the ideological stupidities of either group. The Obamessiah's
spending binge is a self-limiting problem that - while it is likely
to result in vast destruction of Western wealth and American
prestige - may have the salutary effect of reminding a new
generation - the same silly children that voted for the Hopechangey
Administration - just why their elders fought the cold war in opposition
to the socialist/collectivist/communist regimes of the 20th century.
Perhaps a few hundred million starving in the Western world will
serve to teach them never to entrust their freedom and future to
political offal like the current POTUS.

P.S. Don't forget to turn ON every light in your house at 8:30pm local
time tonight.



----------------------------------------------------------------------------
Tim Daneliuk tundra@xxxxxxxxxxxxxx
PGP Key: http://www.tundraware.com/PGP/
.

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