Quote:
Originally Posted by r3p1v
I agree, its bs, this crap happens all the time so w/e life will go on. If I needed the money and had the opportunity to make a lot of money by selling people crazy mortgages and not assuming any of the risk, I probably would. But businesses shouldn't be able to do crazy stuff like that, it should have been more regulated because people are stupid and will actually take these stupid mortgages.
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Regulation is the death of capitalism. The USSR had a heavily regulated industry, and it collapsed because consumers were not allowed to dictate supply and demand. The state is incapable of deciding for everyone what they can and should buy, and at what cost.
The market is self-regulating. People need to lose their houses (that they have not, and cannot pay for) and the people who created a market for these derivatives and securitized debts need to go broke. When there are consequences to bad investments and business, people don't engage in it. How many people sell goods for $1 that cost them $2 to make? Answer: ZERO.
But when the government creates moral hazard by promising to bail out the losers and cheaters, it becomes more profitable to cheat and lose, than to work hard and honest to win.
Regulation is not the answer. The government should be uninvolved. That would make a lot more players behave honestly, knowing there is no one to save their bacon when the shit hits the fan.
In over 100 years of intense regulation, the government is no more capable of controlling the market than it was 200 or 2,000 years ago. The bubbles are getting bigger and more frequent, and people can't connect the dots. They can't see that regulation is increasing the turbulence and making it last longer.
This is all just protectionist BS by Paulson, the former Goldman Sachs ripoff artist. Your wealth is being stolen from you (unless you are buried in debt) in a transfer from Main Street to Wall Street. The sad thing is, you are justifying getting yourself raped. It's like Stockholm Syndrome.