The Bi-Partisan Origins of the Financial Crisis

[Kamala Trump]

Huh? The banks could write bad loans, sell them to Fannie Mae/Freddie Mac to be packaged into MBSs before GLB. The negative incentives seem to have been created by the GSEs who guaranteed the MBSs.

seem.

 

[Timshel]

seem.

Yeah, that's what I said.

Tell us how GLB incented bad lending?

The real argument against GLB's repeal of Glass Stegall has to do with it's pairing with other government regulations, i.e., FDIC and fiat money.

The Federal Reserve is and always has been the primary force in giving incentives to irrational market actions. I thought you knew that.

 

[Kamala Trump]

Yeah, that's what I said.

Tell us how GLB incented bad lending?

The real argument against GLB's repeal of Glass Stegall has to do with it's pairing with other government regulations, i.e., FDIC and fiat money.

The Federal Reserve is and always has been the primary force in giving incentives to irrational market actions. I thought you knew that.

Of course, our whole monetary system is totalitarian and irrational, considering it's fiat nature.

 

[FUCK THE POLICE]

ZOMG FIAT MONEY IS BAD?!1/!

I learneded this from my home studies!

 

[Kamala Trump]

ZOMG FIAT MONEY IS BAD?!1/!

I learneded this from my home studies!

Yes. Just like counterfeiting is bad. It undermines the efforts of people who work for a living.

 

[FUCK THE POLICE]

Yes. Just like counterfeiting is bad. It undermines the efforts of people who work for a living.

It is absolutely idiotic to say that the governments efforts to make a universal medium of exchange has anything to do with counterfeiting.

If anything, and idiotic populist like you should be for more inflation, doesn't that help teh farmers against teh loan sharks?

 

[Timshel]

It is absolutely idiotic to say that the governments efforts to make a universal medium of exchange has anything to do with counterfeiting.

But arguing that the governments attempts to counterfeit has anything to do with counterfeiting is not idiotic at all.

You do not need government to create a medium of exchange. And if the fiat currency were universal it would be FAR worse than it is now. We have competing fiat currencies now. If we had one central bank they'd be printing nonstop, the global economy would meltdown in short order and we would then return to a barter economy.

If anything, and idiotic populist like you should be for more inflation, doesn't that help teh farmers against teh loan sharks?

No, the loan shark gets the money before it's been debased.

 

[FUCK THE POLICE]

But arguing that the governments attempts to counterfeit has anything to do with counterfeiting is not idiotic at all.

You do not need government to create a medium of exchange. And if the fiat currency were universal it would be FAR worse than it is now. We have competing fiat currencies now. If we had one central bank they'd be printing nonstop, the global economy would meltdown in short order and we would then return to a barter economy.

Did your austrian pseudo-economists tell you this?

 

[Kamala Trump]

It's fine to make a universal medium of exchange. But when some parties can create it out of thin air, and others must work for it, it creates a statist and totalitarian power imbalance in society.

 

[FUCK THE POLICE]

It's fine to make a universal medium of exchange. But when some parties can create it out of thin air, and others must work for it, it creates a statist and totalitarian power imbalance in society.

It is not out of thin air. Money has worth soley because of its use as a medium of exchange. There is absolutely no reason that a medium of exchange should have an auxiliary purpose besides being a medium of exchange.

 

[Timshel]

It is not out of thin air.

It is often created out of thin air, other times they use paper, but I think that's sort of still covered by nAHZi's expression.

Money has worth soley because of its use as a medium of exchange. There is absolutely no reason that a medium of exchange should have an auxiliary purpose besides being a medium of exchange.

There is a very good reason, to keep it from being inflated at whim and to the point that it no longer has any value as a medium of exchange.

 

[FUCK THE POLICE]

It is often created out of thin air, other times they use paper, but I think that's sort of still covered by nAHZi's expression.



There is a very good reason, to keep it from being inflated at whim and to the point that it no longer has any value as a medium of exchange.

And it is not. Inflation rates are at fiver percent.

 

[Timshel]

Did your austrian pseudo-economists tell you this?

I am pretty sure they would argue that but so would the Friedman's school and just about anybody that is not completely insane or out for their own personal gain.

 

[Timshel]

And it is not. Inflation rates are at fiver percent.

Sure it is. But they would be much higher if there was only one currency. There would be virtually no check on the central bank bailing out anyone they choose.