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Online usersPollWhat should the government do about ailing financial institutions? Nothing, except to back off and get out—as any Objectivist knows, intervention is treating the disease with the disease 83% Intervene judiciously—enough to avert a catastrophe that is otherwise imminent 3% Intervene massively—as it's doing 3% Nationalize the whole economy and be done with it. Bring on the USSA! 1% Something else (specify) 11% Total votes: 80
 Basic Economics by Thomas Sowell
 Economics In One Lesson by Henry Hazlitt
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Wall Street "Crisis" Submitted by Callum McPetrie on Wed, 2008-09-17 10:24.
No one doubts that Wall Street has been going through some tough times in the last few days, with some major collapses, bail-outs, and bankruptcy claims. Therefore, it is important to re-affirm that, in a free market, people and companies (especially the latter) need to be flexible. The truth of the matter is, in recent times, both consumers and business owners have been protected, to some degree or another, by a safety net (for instance, the welfare state, or the recent bail-outs of Fannie Mae and Freddie Mac in the US). The safety net, by "guaranteeing" economic security, has destroyed the basic need to be flexible, which is one of the most important traits a person or a business could have in a free market. It has also removed much of the need to make intelligent investment decisions (hence, the sub-prime mortgage crisis). In a time such as ours, when events that happen half way around the world can be known here within seconds, and economic circumstances are constantly changing, more rapidly now than ever, companies have to continually adapt to the changing circumstances to survive. This is what we're seeing on Wall Street at the moment. Instead of proper, if drastic, market correction taking place, more and more financial institutions are being bailed out. However, financial assistance only helps to delay the eventual collapse — and magnifies it, as it now impacts the government and its expenditure. Having taxpayers' money go to inefficient banks and financial institutions is a waste of money. There are also interest rates. For a number of years, the Federal Reserve kept interest rates artificially low, which artificially bolstered the home loans market and thus magnified the recent collapses. The solution to all this madness, is, of course, to get the government out of the way of businesses, allowing them to succeed and fail based on their merits. By doing that, businesses will be forced to: a) make smarter investment choices; All in all despite the stress that many people will have to endure during the market corrections going on at the moment, government intervention can only magnify the problem.
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User loginFeatured BookNavigationSyndicate  The Fountainhead by Ayn Rand
 Atlas Shrugged by Ayn Rand
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Ron Paul
I can't imagine voting for Ron Paul as President of the United States, but I have a soft spot for him. He is the only public figure who is a hard core advocate of Ludwig von Mises's economics and this is certainly the time and the place for the Misesian (and of course the Objectivist) world view. He understands economic reality better then anyone else in Washington or Wall Street.
All of the Ivy league degrees and fancy econometric schemes amount to nothing. Most of these "great men" are garbage, and their opinions, their connections and their money are built on bullshit. This week has been shameful. A lot of people need to read Atlas Shugged and Human Action, and they need to do it quickly.
- Jason
They have not done it on
They have not done it on the Australian sharemarket (yet)...and no, it is not 'criminal'.
People only complain about this sort of thing when share prices are falling...never seem to complain when they are rising.
What the idiots never seem to understand is that short selling is in response to mismanagement by Directors and Executives; and by customers voting with their feet.
It is not speculators which send the share price lower but those running the company.
No one is selling short a company which is well managed, making profits, optimistic about the future and expanding.
http://www.nzcapitalist.blogspot.com/
How Shorts Manipulated Market
http://www.bloggingstocks.com/2008/09/19/sec-should-ban-hedge-funds-from...
Is this not criminal?
http://theeleutherian.blogspot.com
Even you too Elijah!
Haven't you heard Elijah...the idiots have just banned 'short-selling'!
"It has often been said that 'the markets' take no prisoners. But at the moment it is not only doing this but is following you home and shooting the family pet as well."
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/09/19/bcnsho...
Not quite 'all' of us
Not quite 'all' of us
...some chaps (ahem) have been doing quite well out of the Wall Street crisis
http://www.nzcapitalist.blogspot.com/
US rapidly going down toilet...
...and the rest of us with it too!
Land
of the free, home of the brave - until it all goes pear-shaped. This was a golden opportunity for the US to showcase the (sometimes harsh) realities of the free market. Instead they did a Labour. Grrrrrr
Every man makes his own destiny
Win win...
until somebody asks to see the color of the government's money and finds that the ink on the notes hasn't dried yet.
The government can easily create more money. But it cannot create wealth.
I'm seriously considering starting to buy gold before Bush/McCain/Obama decide to 'help' some more and further reduce the value of my savings.
THANK GOD the government is here!
Without the government around to bail them out, businessmen would become positively CAREFUL in the way they run their business! And that's no fun!
It's like gambling when you know you cannot lose! Take ridiculous risks with high potnetial returns! If you "win" you pocket obscene profits! If your longshot tanks, and you "lose" the govenrment comes in a subsidizes your stupidity with giant money! It's win-win!
Scott DeSalvo
www.desalvolaw.com
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