Comments on: Great Comment on our “Unregulated Free Market”

By: Steel Phoenix

Steel Phoenix — Fri, 20 Feb 2009 02:04:37 +0000

Government fueled the boom, and then they fueled the bust. They didn’t so much regulate as manipulate. I’ve been laying out the series of events and now I can’t help but see it as deliberate.

By: tomw

tomw — Thu, 12 Feb 2009 20:13:12 +0000

If we had an unregulated free market, the various firms would not be booking their securitized loans with a zero value. They would be getting the loan service companies to pull performance reports on the actual bundles of loans to determine their true ‘return’ based on payment history.
The SEC(?) forced them into insolvency, no?
tom

By: PNEUHKESK

PNEUHKESK — Wed, 11 Feb 2009 03:42:14 +0000

Interesting and communicative, but would be suffering with something more on this topic?

By: Mesa Econoguy

Mesa Econoguy — Sat, 07 Feb 2009 16:15:45 +0000

Mine was better…

By: JoshK

JoshK — Fri, 06 Feb 2009 15:34:58 +0000

Good post. One thing that no one points out is that the FDIC and it’s absurdly under priced insurance is the biggest factor. If we didn’t have the FDIC then people who want any yield would have to invest in funds that buy different products and there could never be the risk of a 1T institutional implosion.