I have nothing to do with this

[cema]

As I am not an expert in finances or economics, I defer any judgment on the bailout and its failure.

But we are all experts in politics, aren't we. Do I understand it correctly that the basic driving force behind the current financial troubles is a failure of a socialist experiment in the housing market? Or is it only part of the problem?

And the politicians, as usual, will blame someone else. (And everybody else will blame politicians.)

It is interesting to note, too, that more Americans are reported to trust Obama's team on economics than McCains' team. Whereas one would think that it would be the other way.

Update. A bit heated in the comments. Chill out, the world is not going to end right now.

Comments

[ira-k.livejournal.com]

"Do I understand it correctly that the basic driving force behind the current financial troubles is a failure of a socialist experiment in the housing market?"

my understanding was the opposite.

[birdwatcher.livejournal.com]

Где-то пузырь должен быть надуться. Это следствие провалившегося социалистического эксперимента по отказу от золотого доллара и сочетания FDIC и банков с частичным резервированием. То, что на этот раз он надулся именно в недвижимости -- довольно-таки неважно.

[shvarz.livejournal.com]

+1
It is a failure of a capitalist experiment in unregulated free market.

[gera.livejournal.com]

Комменты жгут.

[eta-ta.livejournal.com]

aga. The first subthread

[eta-ta.livejournal.com]

more Americans are reported to trust Obama's team
Reported by whom?

Remember the polls right before the election'04? They all predicted Kerry's win.

[eta-ta.livejournal.com]

How, do you think, America managed BEFORE socialist regulation? For 200 years?

[cema.livejournal.com]

I know. That's why I said "reported".

[eta-ta.livejournal.com]

Just wanted to confirm we're on the same page.

[dyak.livejournal.com]

То есть регуляции до 1976 г. не были социалистическими?

[shvarz.livejournal.com]

Approximately like this: http://en.wikipedia.org/wiki/Great_Depression

[gera.livejournal.com]

Оба, особенно в сочетании.

[art-of-arts.livejournal.com]

You're 100% correct.
The socialist element had been introduced into the market system - Barney Frank & Co.'s idea, that funds ought to be lent to poor people, who're unable to repay their mortgages - and the system has burped this moronic idea out.
Now the Congress is playing with the next phase of the socialist crap - that all those who have money must pay for the sins of those who have already failed!

It's called "sending smart money after the stupid one"

[trurle.livejournal.com]

Пузырь на рынке недвижимости, как и прошлый пузырь на рынке акций интернет компаний, как и позапрошлый пузырь на рынках emerging markets эти симптомы, а не причины проблем.

[trurle.livejournal.com]

Only dense people consider the Great Depression to be a manifestation of unrestricted capitalism. But you are in a good company.

[shvarz.livejournal.com]

Thank you

[trurle.livejournal.com]

Welcome

define "before"

[saccovanzetti.livejournal.com]

Remember the polls right before the election'04? They all predicted Kerry's win.




http://www.pollster.com/blogs/convention_bumps_in_context.php

[saccovanzetti.livejournal.com]

How, do you think, America managed BEFORE socialist regulation? For 200 years?

We are playing against China which is buying our securities, including mortgage-backed securities. Their central bank has a trillion dollars, and we cater to their humongous appetite. That's all. Nothing socialist about it: the housing _prices_ would have balooned without Fannie Mae just as well.


Mike Francis: My name is Mike Francis. During the beginning of the mortgage implosion, I was an executive director at Morgan Stanley on the residential mortgage trading desk.

Mike Francis: it was unbelievable. We almost couldn’t produce enough to keep the appetite of the investors happy. More people wanted bonds than we could actually produce. That was our difficult task, was trying to produce enough. They would call and ask “Do you have any more fixed rate? What have you got? What’s coming?” From our standpoint it's like, there's a guy out there with a lot of money. We gotta find a way to be his sole provider of bonds to fill his appetite. And his appetite’s massive.

"The global pool of money. That's where our story begins.
Most people don’t think about it but there’s this huge pool of money out there, which is basically all the money the world is saving now. Insurance companies saving for a catastrophe, pension funds saving money for retirement, the central bank of England saving for whatever central banks save for. All the world’s savings.

It's a lot of money. It's about 70 trillion.

Ceyla Pazarbasioglu: This number doubled since 2000. In 2000 this was about 36 trillion dollars.

Adam Davidson: So, it took several hundred years for the world to get to 36 trillion. Then, in six years, to get another 36 trillion.
Ceyla Pazarbasioglu: Yeah. There has been a very sharp increase.
Adam Davidson: How's the world get twice as much money to invest? Lots of things happened, but the main headline is all sorts of poor countries became kind of rich making TVs and selling us oil: China, India, Abu Dhabi, Saudi Arabia. Made a lot of money and banked it."

[eta-ta.livejournal.com]

You're under the impression I will honor you with an argument
It is a wrong impression.

Go talk to your commie friends.

[eta-ta.livejournal.com]

или "с больной головы на здоровую"

[saccovanzetti.livejournal.com]

There were times when a lot of proud people found themselves in soup kitchen lines...

[eta-ta.livejournal.com]

You're the first candidate.

People like me PROVIDE for those in the soup kitchen lines.

[saccovanzetti.livejournal.com]

People like me PROVIDE for those in the soup kitchen lines.

Not for long...

[art-of-arts.livejournal.com]

здоровая, с Вашей точки зрения, надо полагать, это та, которая решила, что следует одалживать деньги неимущим, поскольку это значит делать добро для всей нации, независимо от способности одалживающего выплачивать долги?...

"All Congresses and Parliaments have a kindly feeling for idiots, and a compassion for them, on account of personal experience and heredity"
- Mark Twain