Obama has a announced a great pile of trillion dollar giveaways to Wall Street, and called it tough regulation, though each of these regulations protects them from responsibility, while tapping the taxpayer’s veins. To show how tough they are on Wall Street, congressmen summoned Goldman and Sach’s executives to Washington, and harshly ranted at them for selling their customers securities based on mortgages that they knew or should have known were $##%.
Archive for April, 2010
Probably not as much as Donna Ron was.
This rapist, terrorist, and bomber, is a frequent visitor to the Whitehouse, one of the most powerful men in academia, and the major ghostwriter of Obama’s book “Dream’s of my father”.
As a result of our defeat, Arab terrorists have moved into Korengal valley. Now Al Quaeda has safe haven in Korengal and their objectives will not be restricted to protecting the freedom of those in Korengal, but destroying our freedom in lands far from Korengal, murdering Jews and Americans, wherever we may be, anywhere in the world.
Here is the Taliban video of their great victory in Korengal valley: (more…)
The US has fled Korengal, Afghanistan, which is now under the uncontested control of the Taliban.
The US created the Kabul government, in order to do good to Afghans, so that they would love us. It attempted to build a road for the people in Korengal valley, so that they would love us. The people of the valley, all of them, promised to kill anyone who worked on the road, and anyone who used the road, and proceeded to do so.
Substantial parts of this article are pillaged wholesale from Ryan Barne’s excellent account of the crisis, and Mortgage Guarantee Insurance’s colorful account of the crisis. I steal from the best. And thanks to the commenters that pointed out numerous errors.
In 2001, the Federal Reserve began cutting rates dramatically, dropping to 1% in 2003, in order to stimulate the economy.
This produced a boom, and especially a housing boom, in 2002. A housing boom was a rational and appropriate response to the extraordinarily low interest rate on a 30 year fixed rate mortgage, and no one was asking whether the extraordinarily low interest rates on 30 year fixed rate mortgages were rational and appropriate. (more…)
The US representatives at Basel probably thought themselves political moderates and mainstreamers – being in about the center and mainstream of Harvard University professors and the New York Times – which of course puts them far to the left of the American public, and a great deal further to the left of the people who created the banking system.
At Basel, the Americans were the “right wing”. The “center” and “mainstream” at Basel was a good deal further left. Thus the mainstream at Basel were people that the ordinary American would think far left crazies, and that those who reorganized the banking system after the great depression would have thought a bunch of bolshie nut cases who needed to be lined up against a wall and shot.
It is often claimed that the disaster was produced by deregulation. What deregulation you may ask?
Well, mostly, the dismantling of Glass-Steagall. I don’t think dismantling Glass-Steagall caused the crisis, but it is undeniable that if Glass-Steagall had remained in effect, the crisis would have been far less severe, for Glass-Steagall restrained financial institutions from being too big to fail. It was the biggest institutions, the institutions too big to fail, that behaved the worst, and lost the largest proportion of the assets they managed. Glass-Steagall also prevented financial institutions from all being “diversified” in exactly the same way, which “diversification” is not very diverse at all.
So why, and how, was Glass-Steagall dismantled? It was dismantled by being replaced and superseded by Basel II. Glass-Steagall consists of seventeen pages, that a competent person can, with some effort, comprehend. Basel II consists of thousands of pages, no one knows how many, and no one person knows more than a tiny fraction of what is in these thousands of pages.
That is “deregulation”.
There have been numberless highly successful prosecutions for predatory lending, even though there is no plausible evidence that predatory lending has ever happened in recent decades, nor has such evidence ever been presented in court, nor is it plausible that predatory lending could be profitable except for lenders who break the borrowers legs and arms in the event of default. (more…)
Bryan Caplan asked why socialism turned out evil and proposed three competing explanations. Volokh Conspiracy followed up, and a horde of socialists appeared out of the wood work, objecting to the premise of the question, claiming that socialism was just fine.