Serious question from one of the unwashed
I was watching the Daily Show and they had Elizabeth Warren on. She was speaking about how after the 1st Great Depression (joke) the nation implimented regulation that avoided the typical boom-bust cycle of the preceding 150 years of U. S. history, from the late 1930's to late 1980's.
FDIC, SEC regulations, and Glass-Steagal (separating commercial banking from investment banking)
And that since Reagan this regulation has been eroded.
Without getting into partisinship (impossible dream I know) can you edumacated mongers edumacate me on the subject a bit?
It isn't your fathers' 'Too big to fail'
The notion of "too big to fail" while commonly used in the pejorative by the main stream media (regardless of political slant) is largely misunderstood as to its roll in market psychology and in some cases its necessity for economic stability.
Unfortunately, the morons in the previous administration (please note that I am dumping on a Republican Admin) did not understand it and destroyed (yes destroyed) TBTF as part of the bedrock of market psychology. If they had chosen to continue the notion / perception of TBTF, it would have helped last summer / fall and would have lessened the impact of the financial crisis across the economy. The event to which I refer is of course letting Lehman Bros fail. It shattered TBTF and immediately destroyed any confidence in any and all counter parties to financial transactions. In the wake of Lehman's September bankruptcy, the entire economy shut down for weeks, in large part due to the nonavailability of commercial paper and other short-term debt instruments that are the oil to the economic engine. This acerbated the already bad economic situation and accelerated layoffs across the nation in all sectors of the economy (the effects of taking three weeks of GDP and throwing it out the window)
You were correct on the NEW and 'improved' selective TBTF, if you combine these two notions:
[QUOTE=Hunt99]Because the government has already let it be known that a company "too big to fail" will be artificially propped up with taxpayer money[/QUOTE][QUOTE=Hunt99]I do not agree that presidents can have no effect on the economy. Usually the effect is in the aggregate, but of late the effects are becoming much more direct, picking "winners" and "losers."[/QUOTE]Now the precedent has been set that TBTF is entirely at the whim or agenda of the president. Whether Obama, Bush, Reagan, Washington or anyone in between, that is a very bad thing.
For TBTF to support finding a bottom in a financial crisis, its existence must be absolute in the mind of the market participants, even though it maybe in part mythology.
And lets not forget Chavez
Loads of pictures of Chavez and Obama making goo-goo eyes at each other.
My left-leaning friends are all so happy - isn't it a wonderful change from the animosity of the past 8 years?
And I have to agree. Like President O, I'd much rather have an amicable relationship with Chavez's Venezuala. Problem is, I can't as easily ignore the human rights abuses, the nationalization of industry and that inconvenient 'president-for-life' thing he's trying to do.
I find it sickening to see the President of the United States dealing with an anti-democratic thug like Chavez. Obviously our new President values smiles and handshakes over freedom. This isn't an isolated case and it will not end well.
Principles? We don't need no stinkin' principles.
I'm sending in the relief
[QUOTE=QuakHunter]Daddy, What facts of my post on the Pirates and the actions of the Navy SEALS were confusing? And since the epicenter of all Liberal rage is Based on Ronald Reagan, let me share a quote, "Facts are stubborn things". The facts of Obama's actions are there for all to see and for each person's interpretation. The left sure wanted to vilify GWB when he acted like a warrior. I just want those fuckers to like us again!
Boy that Monday Morning Quarterbacking does suck; I hate it now just like I did over the last eight years. And please look through my posts to find out where I have defended GWB in anything other than the prosecution of the War on Terrorism; the bullshit going back and forth with this "Neo-Con" this and "Neo-Con" that is just eight years of pent up liberal rage. I still want to know what Neo-Con means? I know it means Neo-Conservative but I am stumped on the application. Somehow I don't believe it is flattering.
I would like the O defenders to take a stand right now on this board and tell me the merits of Reid, Pelosi, Kennedy, Frank and Obama and tell me where they feel our country will be in four years, not in the one or two years that we are in this fucking love fest. At the end of his first and only term we will re-visit those posts and I will issue a huge fucking mea culpa if the forecasts are anywhere near accurate. And I will tell you this fact, I am rooting for my country not against it.
And please, do NOT bring the Cubbies into this. Derek Lee and Alfonso Soriano would not shoot them from long range. They would have held their breath and swam up on them and cut their throats while Lou Pinella was directing ops.
Go Cubs, beat Pirates![/QUOTE]Rock you should respond to paragraphs 2 and 3, you write about this better than I do.
Appologies to the Cubbies.