Quote from: PabloMack on May 08, 2013, 03:06:11 PM
Quote from: Tangled-Universe on May 02, 2013, 04:29:36 AM
PabloMack, I don't know where to start with telling you how naïve some of the things are you are saying.
Fincial crisis 2008 not because of bankers, but because of do-gooders?
TU, tell me what happens when a bank makes a lot of loans and the borrowers can't or won't repay them on a massive scale. Don't go off on a humanitarian tear or some other philanthropistic tangent. Just answer that simple question please.
Don't try putting words into my mouth
The shortest answer to that simple question is the answer you want to hear....but I know you're sometimes the type of guy who stops reading any further, so I'll save it for the end
If you dive into the origin of the Fed, the big crunch in the 30's, installation of glass-steagall and such, then the breakdown of these inhibitory/regulating laws to prevent banks from abusing their position and prevent speculation, then you'll see more clearly what the crisis is about and what caused it.
There's an extreme lot more to it than people borrowing money and not being able to pay it back.
People who had these loans and couldn't pay for it caused the banks to go bankrupt.
Following your logic the banks tried to do good by giving people opportunities (I'll refrain from using parentheses here).
That's the answer you wanted to hear, wasn't it?
As I have superbriefly explained there's a whole history before this crisis which made this all possible.
There's a lot more to it, but yes if you look at this as short-sighted as you do then none of this will or can make any sense, probably?
So to end a bit more constructive rather than expressing my amazement and disappointment in lack of observation and healthy amount of skepticism towards the "do-gooders", I would like to suggest to read this, just for starters:
http://www.forbes.com/2009/11/05/innovation-ayn-rand-intelligent-technology-capitalism.html(from) there you can read that capitalism works if money is being backed up by something substantial, like labor.
In the past decades virtual fiat money has been created which wasn't being backed up by any kind of substantial thing of actual value.
Look up how fractional banking works and you'll find out.
Look up how US mortgages were backed by sick insurances.
Look up how the financial lobbyists destroyed all the protective mechanisms, designed in the 30's, which were to prevent a financial crisis like this.
Look up how Goldman Sachs tricked Greece into creeping the crisis into Europe (which would happen anyway)
Look up how high frequency trading affects money
Look up how high frequency trading was developed (it is STOLEN technology from a guy who was hired to PREVENT high frequency trading)
etc. etc.
But no no no....you still think it are do-gooders?