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> The market optimizes everything for the better if it is allowed. Such as financial products? I think we have enough evidence right now that people are not ma
by sfk 18y ago
> The market optimizes everything for the better if it is allowed.
Such as financial products? I think we have enough evidence right now that people are not mature enough for a totally free market.
- pelle 18y agoYou are talking about one of the most highly regulated markets in the US. It's been at least 100 years since the financial markets where free in the US.
- jbjohns 18y agoYou do realize that this whole thing came crashing down because of the very lightly (if any) regulated CDO's right?
- byrneseyeview 18y agoYou don't think the mortgage market had anything to do with it? As far as I know, the problem is not that CDOs trade at a discount to their underlying value; it's that the underlying value has dropped.
- jbjohns 18y agoIt's a bit more complicated than that: http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom http://www.portfolio.com/news-markets/national-news/portfoli...
- byrneseyeview 18y agoI am pretty sure that was implicit in my comment. I have read the Lewis piece, which is a great way to get an overview from the perspective of the half-dozen folks willing to give Lewis an interview. I'm not saying that this was entirely due to government intervention -- just that the giant tax incentives, aggressive government market manipulation, and $100B+ portfolios long mortgages and short puts created by government agencies.