James Crotty: What Does Wall St. Want Out of Austerity and What Benefits Does it Gain From a Small Government?
So he admits that the big banks aren't really regulated at all. And wants more regulation. Except every single time we ask for more regulation we get it, only it excludes the huge banks!
He ignores the existing sea of regulations that make smaller banks and firms nearly still born. Building an effective wall for the elite. But instead of suggesting to remove some of that "sea" of rules so some of the smaller fish can grow to take on the bigger ones, he wants more regulation walls.The market would have punished those people who made bad decisions. So yes this includes a school who has it's savings in a terrible company.
It sounds like he wants to strip all responsibility for all actions claiming some things are just too important to be responsible for.
So don't worry about making responsible choices, we'll just dilute the negative backlash by letting all people pay.
This encourages irresponsibility!"If they all crashed, the whole global economy would crash". Um no.
There's been times before where they effectively haven't been regulated, and because it's "cheap" to begin a financial firm there are thousands of them. Because there are thousands of them, there's a wide spread of people in many MANY different financial firms.
Having "all" of them crash at once would be like having all restaurants in the world shut down from e-coli. (More likely with one giant chain with one source.)Proving markets are "efficient" absolutely does _not_ require investors to predict the future. In fact, to claim that a government can improve the efficiency of a market, is to claim that some smaller group of people (selected for reasons other than their record of prediction) than the pool of all investors, can _better_ predict the future than those who bet their own money on their predictions.in ireland, the imf, which is basically broke, has insisted on 20% collateral, i.e., equal to ireland's solvent pension fund. ireland is getting raped. someone, quick, call interpol.
i agree with obarelida, mr. jay, not only are your interviews interesting but you have the good sense to let your guest do the talking. thanks.