Thread: Wall Street Financial Crisis

Originally Posted by Ray

Is that anyone's fault but that of the so called freewheeling capitalism that is so touted as the way to go?

Who did it?

Non Americans?

What are you trying to justify?

Sir,

I am trying to say that it is not necessarily the capitalist system at fault, but mismanagement of the same by certain companies, government regulators and private individuals.

For e.g., here is a link for your reference which says how the Citigroup executives virtually helped demolish the checks and balances that have long been in place
Citigroup's Sandy Weill. - By Chris Suellentrop - Slate Magazine

Here is another, more detailed document. This is a testimony by a Consumer Group in front of the Senate Committee on Banking and Housing. It shows how financial companies have exploited loopholes within the regulations to fulfill their profit objective

http://www.consumerfed.org/pdfs/Gram..._Testimony.pdf

To your question, yes, these were perpetrated by Americans and they are now facing the music for it.

I think it is for the countries and companies around the world to understand how they deal with other countries and companies. The ones which sank their teeth too deeply into Corporate America now have to swallow the toxic flesh now.

Barack Obama is getting together some of his financial advisers but he says he's not going to release any plans on how to fix the economy at this time.

But as usual he's going to wait until after the Bush Administration does so he can pick it apart like he usually does.

I was hoping for the entire congress to take an extended vacation...somewhere around 1 maybe 2 decades.

I do not see how this is necessarily a bad thing. They are getting out of the way and letting professionals handle the job (which was not being done in the first place).

The last thing we now need is a bunch of pollies promising free stuf to the voters with the November election in mind.

Now Obama is making claims that McCain stole his ideas on fixing the economy.

When have I heard him say this before?

Originally Posted by gunnut

I was hoping for the entire congress to take an extended vacation...somewhere around 1 maybe 2 decades.

LOL, that way you will end up at the Chinese government. Maybe that turns out to be better.

Anyway, Americans are going socialist now, and this round means the death of Washington Consensus.

Originally Posted by Ray

It seems you have not heard the 'N' word - nationalise.

The US govt has nationalised AIG and own 80%!

Step in to the real world!

All banks in Australia are protected by the Federal Govt, It costs the banks for sure, but we would never have banks falling over.

Building Societies are a different matter, they are not protected and are a higher risk.

Freddie

Originally Posted by antimony

I do not see how this is necessarily a bad thing. They are getting out of the way and letting professionals handle the job (which was not being done in the first place).

The last thing we now need is a bunch of pollies promising free stuf to the voters with the November election in mind.

If the last two days have proven anything, it's that neither the US Federal Reserve nor the US Treasury has any professionals.

Antimony I think that something like this was inevitable.
After all:
politicians need money-->bankers have money-->politicians can create loopholes-->bankers want loopholes
End result was like you said, all those checks and balances were rendered ineffective.

There's nothing wrong with a capitalist marketplace (can there really be anything else) as antimony has already said, it simply needs to be well regulated.
Twice in the last eighty years America's trading systems have totally collapsed. Last time it caused a world collapse, this time, well lets wait and see. Either way, the evidence is in that there is something fundamentally flawed in Americas regulatory and oversight abilities. So flawed it seems to reside within the basic political system.

Originally Posted by Ray

It has proved to be a failed Idol! And that too under a Govt that championed so vigorously that all things bright and beautiful was the sole prerogative of the USA! And I believed that!

when?

Originally Posted by Parihaka

If the last two days have proven anything, it's that neither the US Federal Reserve nor the US Treasury has any professionals.

Well, they are supposed to be the pros aren't they?

I take your point, but even at this point they will still be more effective than the politicos, who will probably come up with a financial version of "Summer Gas Tax Holiday"

Antimony,

I am a novice as far as understanding economics or finance is concerned.

I have seen Socialism and I have seen Communism (though not in its pure form).

With India going the capitalist way, it had brought some relief. Yet, this totally collapse like nine pins of highly respected and touted icons of capitalism, and its effect on the world, does appear scary.

And what is worse is that the US govt has gone the socialist way to salvage and prop up!

In short, there appears to be gross negligence in monitoring mechanism and what is scary is that it is greed driven without any morality. That is what worries me! I can't reconcile that people have no moral conscience and accountability. And yet talk a whole lot of God and religion in their elections which gives solace that there is some conscience. Pro Life, anti gay etc etc. Ideal folks. But in reality it appears to be otherwise and sheer cosmetic. Hollow. Maybe, I have not understood. Who knows?

In God, we trust. Indeed God alone is our Saviour.

I bet China is having the last laugh!

Originally Posted by donnie

when?

You have not seen or experienced it as yet?