Brown People to Blame for financial meltdown

Superfreak said:
Assmunch continues to ignore the problem in his line of 'thinking' (by the way... you just agreed with asshat... that should tell you something).... the Treasury has the TIME and RESOURCES to unwind this debt. Most private firms do not. Those that do... will participate in the auctions.

Just because the ability to make money exists doesn't mean it isn't without great risk. That risk is reduced by the Treasury holding it because they have the TIME to ride it out should they need to. Very few investors are going to wait 10-20 years for this to payoff.

Side note... the initial vote just failed to pass this bill in the house.
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As I noted before, the Feds made money in the aftermath of the Great Depression. This is how they did it; by being able to hold on.
 
Cypress said:
Yes, in a perfect - but impossible - Libertarian world we could always say that people will behave rationally. That's not human nature.
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The fact that you can even conceptualize rational behavior proves that it is well within human nature. We would not be at the top of the food chain if not for our rational capacity.
 
RStringfield said:
The fact that you can even conceptualize rational behavior proves that it is well within human nature. We would not be at the top of the food chain if not for our rational capacity.
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Human beings don't always act rationally. It is a mistake in economic equations and Austrian pseodo-scientific oral arguments to assume a rational actor.
 
Watermark said:
Human beings don't always act rationally. It is a mistake in economic equations and Austrian pseodo-scientific oral arguments to assume a rational actor.
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Of course, people don't always act rationally. However, these problems are not due to massive irrational behavior. They are to due to distortion of the information on which market participants make decisions.

If everyone were rational, then retarded lefties would stop ignoring the causes of these problems.

People are greedy. The people on Wall Street are greedy, the people on Main Street are greedy and the politicians/bureaurats are greedy. They've always been greedy. If greed alone were the cause markets would never operate with any success.
 
Watermark said:
Human beings don't always act rationally. It is a mistake in economic equations and Austrian pseodo-scientific oral arguments to assume a rational actor.
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LOL at "oral arguments", you can always tell when someone is trying to sound smart.

Had you actually bothered to read any Hayek or Von Mises, you'll know that they do not assume people always act rationally, they do warn about government taking responsibility for people and where it can lead:

"once government has embarked upon planning for the sake of justice, it cannot refuse responsibility for anybody's fate or position" - Hayek

Are human beings going to act MORE rationally and responsible by this bailout plan with government taking responsibility for them? You are only going to make it worse going down this road.
 
They don't act "rationally" as defined by water. It might not even seem "rational" to most people. But that is due to forcing some external value judgment upon them.
 
RStringfield said:
They don't act "rationally" as defined by water. It might not even seem "rational" to most people. But that is due to forcing some external value judgment upon them.
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RS, you simple have to accept the fact that if everyone act in their own best interest the best mutual result will not always happen. This can be proved mathematically, with the "liberal paradox". There are many situations in which if everyone acts in their own best interest a mutually destructive situation will occur.
 
KingCondanomation said:
LOL at "oral arguments", you can always tell when someone is trying to sound smart.

Had you actually bothered to read any Hayek or Von Mises, you'll know that they do not assume people always act rationally, they do warn about government taking responsibility for people and where it can lead:

"once government has embarked upon planning for the sake of justice, it cannot refuse responsibility for anybody's fate or position" - Hayek

Are human beings going to act MORE rationally and responsible by this bailout plan with government taking responsibility for them? You are only going to make it worse going down this road.
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Of course we should always pay attention to the law of unintended consequences, and remember that we will often badly predict how government intervention will affect the market(which is why it should rarely be used). But there are some situations in which it is obvious that individual self-interest is making producing a destructive situation, and which the government can step in and solve the problem. Just because some government intervention is bad doesn't make all government intervention bad.
 
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Watermark said:
RS, you simple have to accept the fact that if everyone act in their own best interest the best mutual result will not always happen.
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So? That makes it irrational?

Watermark said:
This can be proved mathematically, with the "liberal paradox". There are many situations in which if everyone acts in their own best interest a mutually destructive situation will occur.
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You cannot determine the best mutual result without a means to establish the self interest of the individuals. Without free market prices your goal of achieving the best mutual result is not even possible.
 
Watermark said:
There was one sole cause of the current crisis and that was deregulation.
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Political pressure to give loans to people who couldn't afford them was another cause. Affimative Action is similar to that kind of thinking. It's not brown people's fault; it's the fault of PC idiocy.
 
AssHatZombie said:
Political pressure to give loans to people who couldn't afford them was another cause. Affimative Action is similar to that kind of thinking. It's not brown people's fault; it's the fault of PC idiocy.
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It's rich white people selectively "helping".
 
RStringfield said:
So? That makes it irrational?



You cannot determine the best mutual result without a means to establish the self interest of the individuals. Without free market prices your goal of achieving the best mutual result is not even possible.
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And am I suggesting nationalizing the entire economy RS?

We should have a free market, and the government should step in to correct market failures when they become clear.
 
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