3 ms·

This narrative does not follow. Greed and corruption are a 2 way street, they don't disappear because of lack of governance, if anything they become more pronou

by throw2016 8y ago

This narrative does not follow. Greed and corruption are a 2 way street, they don't disappear because of lack of governance, if anything they become more pronounced. Greenspan and Co's systematic dismantling of regulations directly led to the financial crisis, fraud and a 4 trillion bailout. At the moment corporates lobby to get their way. Without state power and regulatory constraints they will and do whatever they want anyway. Just like banking fraud does not discredit the idea of banks bad governance does not discredit the idea of governance that balances various interests and tempers greed .

pitaj 8y ago
> lack of governance Lesser government power is not the same as lack of governance. Indeed, government having the power to pick and choose winners and losers is fundamentally unjust and violates the rights of the people. > Greenspan and Co's systematic dismantling of regulations directly led to the financial crisis, fraud and a 4 trillion bailout. The "deregulation" narrative makes for a good story, but it's not that true. There are several examples of additional government intervention which played an important role: - Incentives for sub-prime mortgages. The government provided incentives for banks to provide mortgages to people who normally wouldn't have a good enough standing. This was done in the name of helping minorities buy houses. - Previous bailouts. The government bailed out banks multiple times in the past. When banks make risky loans and investments, fail, and then get bailed out by government because they're "too big to fail", this signals to the banks that they should keep being riskier and risker, because the government will cover their risk. - Housing incentives. The mortgage rebate on income tax is a direct incentive for people to buy expensive houses instead of renting or buying within their means. - Monetary policy. The Fed unnaturally driving inflation and interest rates distorts investment and development. This is covered extensively by Business Cycle Theory.
- throw2016 8y ago
  If your actions are motivated by greed then the problem is your greed and motivation not governance, is good or bad governance forcing corporates and businesses to act unethically? This is not a tenable position. The myth floated by libertarians of the CRA causing the subprime crisis was thoroughly debunked as early as 2008, yet we are in 2018 and this continues to be repeated never mind the facts. The crisis was a result of systematic and willful fraud by private players not subject to the CRA. $3 out of $4 dollars of subprime loans were not made under the CRA. [1] [2] [3] [1] http://www.slate.com/articles/business/moneybox/2008/10/subprime_suspects.html http://www.slate.com/articles/business/moneybox/2008/10/subp... [2] https://www.washingtonpost.com/news/wonk/wp/2013/02/13/no-marco-rubio-government-did-not-cause-the-housing-crisis/?utm_term=.5410b1303725 https://www.washingtonpost.com/news/wonk/wp/2013/02/13/no-ma... [3] https://www.cbsnews.com/news/loans-to-low-income-households-did-not-cause-the-financial-crisis/ https://www.cbsnews.com/news/loans-to-low-income-households-...

pitaj 8y ago

> lack of governance Lesser government power is not the same as lack of governance. Indeed, government having the power to pick and choose winners and losers is fundamentally unjust and violates the rights of the people. > Greenspan and Co's systematic dismantling of regulations directly led to the financial crisis, fraud and a 4 trillion bailout. The "deregulation" narrative makes for a good story, but it's not that true. There are several examples of additional government intervention which played an important role: - Incentives for sub-prime mortgages. The government provided incentives for banks to provide mortgages to people who normally wouldn't have a good enough standing. This was done in the name of helping minorities buy houses. - Previous bailouts. The government bailed out banks multiple times in the past. When banks make risky loans and investments, fail, and then get bailed out by government because they're "too big to fail", this signals to the banks that they should keep being riskier and risker, because the government will cover their risk. - Housing incentives. The mortgage rebate on income tax is a direct incentive for people to buy expensive houses instead of renting or buying within their means. - Monetary policy. The Fed unnaturally driving inflation and interest rates distorts investment and development. This is covered extensively by Business Cycle Theory.

throw2016 8y ago
If your actions are motivated by greed then the problem is your greed and motivation not governance, is good or bad governance forcing corporates and businesses to act unethically? This is not a tenable position. The myth floated by libertarians of the CRA causing the subprime crisis was thoroughly debunked as early as 2008, yet we are in 2018 and this continues to be repeated never mind the facts. The crisis was a result of systematic and willful fraud by private players not subject to the CRA. $3 out of $4 dollars of subprime loans were not made under the CRA. [1] [2] [3] [1] http://www.slate.com/articles/business/moneybox/2008/10/subprime_suspects.html http://www.slate.com/articles/business/moneybox/2008/10/subp... [2] https://www.washingtonpost.com/news/wonk/wp/2013/02/13/no-marco-rubio-government-did-not-cause-the-housing-crisis/?utm_term=.5410b1303725 https://www.washingtonpost.com/news/wonk/wp/2013/02/13/no-ma... [3] https://www.cbsnews.com/news/loans-to-low-income-households-did-not-cause-the-financial-crisis/ https://www.cbsnews.com/news/loans-to-low-income-households-...