The Bank of England was a very successful regulator by cooperating with market participants.i notice he neglected to say it's the same bank he brought down...
Posted on 11/28/2008 8:20:13 AM PST by jessduntno
SPIEGEL: So you support stricter regulation and more efficient control of the markets?
Soros: Indeed. However, you have to recognize that regulations will never be completely successful and they will always be full of holes. You must constantly be ready to fill new holes. Actually regulation should be kept to a minimum, but there has to be some cooperation between market participants and authorities -- as was the case in the early postwar years. The Bank of England was a very successful regulator by cooperating with market participants. This cooperative spirit was broken by the market fundamentalists.
SPIEGEL: Not in Germany. We have many semi-private banks that largely dominate the market. Politicians serve on their supervisory boards. But they are in particularly bad shape.
Soros: These public-private partnerships are very, very dangerous. The most rotten part of the financial system in the US consisted of the government sponsored entities, Fannie Mae and Freddie Mac. They really kicked off this crisis. The state should set the rules and enforce them -- but not become involved as a market player.
(Excerpt) Read more at spiegel.de ...
I am looking forward to the news coverage of this FRANK admission...
These public-private partnerships are very, very dangerous.
Crony Capitalism.
There should be an outcry from capitalist whenever ‘they’ say this is the fault of the ‘Free market’. In a free market the failures would have never made it this far. These bad business models would have collapsed long ago!
The fundamental problem was not Fannie and Freddie per se, it was Congress' manipulation of those institutions for their own polical goals that broke them.
Correction... The economy is in the process of falling off the cliff. As the old Batman TV Series used to say... The worst is yet come.
http://www.youtube.com/watch?v=_MGT_cSi7Rs
and note how Republicans say that bad things are going on and how the buy-my-vote Democrats insisted there were no problems. Waters even goes on to praise Franklin Raines, who was later found guilty of cooking the books at Fannie Mae, stole $90 million while its CEO, and was fined $1 million and given a slap on the wrist. He also served as a major adviser to Obama during the campaign.
Let's see...steal $90 million...get fined for $1 million. Sweet! Sounds like crime does pay if you have political connections.
But their inherent government-sponsored-enterprise status was what made them rotten. Giving Congress a say is always going to result in political interference and corruption.
"I always play by the rules. At the same time, I try to improve the rules. In so doing I often suggest changes from which I would not personally benefit. I have the common interest at heart, not my personal interest."
As regulators only AND only if it is still government of and by the people.
The FDIC is a government chartered corporation and has a good history—so far. The Resolution Trust Corporation bought and sold billions of assets and successfully cleaned up the S&L debacle in the 90’s. However, I agree with you about the dangers posed by government involvement/interference.
Soros is the epitome of a die hard liberal for they are always dead set upon creating a problem only to create another problem to fix the problem, and creating another problem to create the fix for the fix of the problem and so on and so on....
Living and breathing progressiveness.
Oh, and he's an anti-American horses arse to boot, IMO.
a.k.a., "Socialism of the German Model"
We must first take back the language if we are going to have any chance of prevailing.
And that is why Soros went out and bought himself a President...
The Bank of England was a very successful regulator by cooperating with market participants.i notice he neglected to say it's the same bank he brought down...
RTC and FDIC were/are essentially government insurance, but the two FMs are carrying out the function of banks, in the non-governmental sector.
However, we are basically in agreement.
Actually, it’s closer to (the real) Fascism, which was basically socialist. That’s what Mussolini had set up in Italy.
Yep.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.