4 ms·

The market is punishing bad actors with insolvency. Yet somehow the conclusion is that markets are not effective in self-regulation.

babypuncher 4y ago
When the market punishes bad actors like this there tends to be a lot more fallout. Government regulations can help limit the blast radius or avoid them altogether. In 1929 the free market punished the banks for their bad behavior and everyone suffered a decade long depression because of it.
- aww_dang 4y ago
  I disagree on all points here. Not only did the US central bank create the conditions for the stock market crash of 1929, but the interventionist policies of FDR prolonged the economic hardship. Interventionism put the "great" in the "great depression". Not only did they create the bust, but they magnified the blast radius. https://cdn.mises.org/Americas%20Great%20Depression_3.pdf https://cdn.mises.org/Americas%20Great%20Depression_3.pdf https://mises.org/library/did-fdr-make-depression-great https://mises.org/library/did-fdr-make-depression-great https://mises.org/library/forgotten-depression-1920 https://mises.org/library/forgotten-depression-1920 https://mises.org/wire/1920-crash-cured-itself https://mises.org/wire/1920-crash-cured-itself
  - twiddling 4y ago
    Hmm. all the same source, as if there is an agenda...
    - babypuncher 4y ago
      And that source is Ron Paul's think tank
      - aww_dang 4y ago
        Misattributing a source is not the same as engaging in a discussion. It isn't a substantive reply or even tangentially related to the topic. Furthermore, I have a bridge to sell you if you believe that central bank apologists do not have an "agenda". Evaluating the argument on the merits solves all of this.
adrr 4y ago
What about all the clients that lost their money? This is a zero sum game, if someone loses $10b, someone is making $10b on the other side.
AlexandrB 4y ago
The consequences doled out by the market are not distributed equitably. A bunch of late-comers and depositors lost everything, while the people most responsible for the disaster live in multi-million dollar homes in the Bahamas. This seems like a recipe for the same thing happening again and again. If SBF sees the inside of a prison cell that won't be the free market at work but rather the government.

babypuncher 4y ago

When the market punishes bad actors like this there tends to be a lot more fallout. Government regulations can help limit the blast radius or avoid them altogether. In 1929 the free market punished the banks for their bad behavior and everyone suffered a decade long depression because of it.

aww_dang 4y ago
I disagree on all points here. Not only did the US central bank create the conditions for the stock market crash of 1929, but the interventionist policies of FDR prolonged the economic hardship. Interventionism put the "great" in the "great depression". Not only did they create the bust, but they magnified the blast radius. https://cdn.mises.org/Americas%20Great%20Depression_3.pdf https://cdn.mises.org/Americas%20Great%20Depression_3.pdf https://mises.org/library/did-fdr-make-depression-great https://mises.org/library/did-fdr-make-depression-great https://mises.org/library/forgotten-depression-1920 https://mises.org/library/forgotten-depression-1920 https://mises.org/wire/1920-crash-cured-itself https://mises.org/wire/1920-crash-cured-itself
- twiddling 4y ago
  Hmm. all the same source, as if there is an agenda...
  - babypuncher 4y ago
    And that source is Ron Paul's think tank
    - aww_dang 4y ago
      Misattributing a source is not the same as engaging in a discussion. It isn't a substantive reply or even tangentially related to the topic. Furthermore, I have a bridge to sell you if you believe that central bank apologists do not have an "agenda". Evaluating the argument on the merits solves all of this.

adrr 4y ago

What about all the clients that lost their money? This is a zero sum game, if someone loses $10b, someone is making $10b on the other side.

AlexandrB 4y ago

The consequences doled out by the market are not distributed equitably. A bunch of late-comers and depositors lost everything, while the people most responsible for the disaster live in multi-million dollar homes in the Bahamas. This seems like a recipe for the same thing happening again and again. If SBF sees the inside of a prison cell that won't be the free market at work but rather the government.