4 ms·

>the offenders unpunished Unpunished...for what? What are the crimes? I mean, people were certainly punished financially when their banks equity was wiped ou

>the offenders unpunished Unpunished...for what? What are the crimes? I mean, people were certainly punished financially when their banks equity was wiped out or bought for pennies on the dollar. >Quantative easing is bailouts by the backdoor. Please elaborate. >Keynsian economics got this right. Do you know the academic origins of QE?

crdoconnor 11y ago
>Unpunished...for what? What are the crimes? Wire fraud. Illegal since 1872. >Please elaborate. QE pushed up the value of assets which had plunged in value. Assets which were used by the banks as collateral for loans which were now bigger than the value of those assets and were going bad very quickly. That made those banks what is technically known as "insolvent"... until the stealth bailout. >Do you know the academic origins of QE? Monetarism. You can place the blame squarely at Milton Friedman's feet for QE, not Keynes. Keynes advocated fiscal expansion, not funny money tricks to reduce interest rates below zero. Milton Friedman was firmly of the opinion that tweaking interest rates was enough to successfully manage any economy. Clearly not so much...
- edanm 11y ago
  Who was committing wire fraud?
deepnet 11y ago
The crime is wilful financial mismanagement, it took many forms: sub-prime morgages, LIBOR manipulation, fake AAA ratings, Goldman's advising its clients buy toxic assets to get them off the books, ... the list of actual crimes is huge and largely unprosecuted by the revolving door financiers/ regulators. Turning a blind eye, wilful ignorance should not be an excuse but it is a succesful one. Capitalism is self-interest - the idea of self-regulation is a nonsense, if one can make money and get away with it then someone will which is natural. What is wrong is the continued lack of oversight, either by lack of regulation; or the regulators and regulated change places - the revolving door. The economy is a golden goose, wealth is continually created, but if the money is hoarded, economies stagnate - no-one benefits, the goose is dead. Quantative easing removes value from money by printing more, then gives it to the banks who hoard it. Yes QE doesn't have to be bad, if the printed money recirculates, the problem is how it is done (no guarantees about lending from banks) - its origins doesn't stop them juking it to all heck. The problem is not capitalism but weak government who give out money but negotiate only vague promises not guarantees. As the voters are responsible for government then the electorate is ultimately responsible for this, but were they really given a choice ? On a humerous note perhaps in times of crisis the government should be suspended and let the civil-service run things with out the costly and unecessary changes indulged in by the popularity contests.

crdoconnor 11y ago

>Unpunished...for what? What are the crimes? Wire fraud. Illegal since 1872. >Please elaborate. QE pushed up the value of assets which had plunged in value. Assets which were used by the banks as collateral for loans which were now bigger than the value of those assets and were going bad very quickly. That made those banks what is technically known as "insolvent"... until the stealth bailout. >Do you know the academic origins of QE? Monetarism. You can place the blame squarely at Milton Friedman's feet for QE, not Keynes. Keynes advocated fiscal expansion, not funny money tricks to reduce interest rates below zero. Milton Friedman was firmly of the opinion that tweaking interest rates was enough to successfully manage any economy. Clearly not so much...

edanm 11y ago
Who was committing wire fraud?

deepnet 11y ago

The crime is wilful financial mismanagement, it took many forms: sub-prime morgages, LIBOR manipulation, fake AAA ratings, Goldman's advising its clients buy toxic assets to get them off the books, ... the list of actual crimes is huge and largely unprosecuted by the revolving door financiers/ regulators. Turning a blind eye, wilful ignorance should not be an excuse but it is a succesful one. Capitalism is self-interest - the idea of self-regulation is a nonsense, if one can make money and get away with it then someone will which is natural. What is wrong is the continued lack of oversight, either by lack of regulation; or the regulators and regulated change places - the revolving door. The economy is a golden goose, wealth is continually created, but if the money is hoarded, economies stagnate - no-one benefits, the goose is dead. Quantative easing removes value from money by printing more, then gives it to the banks who hoard it. Yes QE doesn't have to be bad, if the printed money recirculates, the problem is how it is done (no guarantees about lending from banks) - its origins doesn't stop them juking it to all heck. The problem is not capitalism but weak government who give out money but negotiate only vague promises not guarantees. As the voters are responsible for government then the electorate is ultimately responsible for this, but were they really given a choice ? On a humerous note perhaps in times of crisis the government should be suspended and let the civil-service run things with out the costly and unecessary changes indulged in by the popularity contests.