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To: Kartographer
“This was the collapse of an ethos that prevailed for a generation,” Lowenstein says. “The idea that markets always have it right,”

Free markets ebb and flow through busts and booms; command economies are consistently stable, stagnant and unproductive. Keynes just preached incremental subjugation.

6 posted on 04/08/2010 4:39:44 PM PDT by Spok (Free Range Republican)
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To: Spok

Free market is also runned by people who are disciplined and has some degree of ethics. Creating an investment vehicles that are designed to eventually blow up and leave someone holding the bag is not exactly smart economics nor good for the nation. If a serious investigation was ever conducted on the mortgage business, how Moody rated high risk securities as AAA, and knowingly selling collapsing products as low risk investments to unsuspecting investors need to be looked at. What we potentially have on Wall Street was not free markets but white collar crime. The sad part is the argument over capitalism is just BS, while the government is tied up over this issue, the ones who made tons of money on the crime are laughing all the way to the bank while the statue of limitation clock is running. Some say this is too big to investigate. The choke point is Moody and how they rated the mortgage backed securities AAA, and the second point is every mortgage that is a liar loan can be subject to scrutiny. Either the borrower goes to jail, or the mortgage originator goes to jail. Each guy you catch, you flip him for info and he will turn in the guy up his chain who told him to do the fraud.


20 posted on 04/08/2010 5:45:01 PM PDT by Fee (Peace, prosperity, jobs and common sense)
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