Shouldnt govermetns have a tight grip on financial markets?

Originally posted by Cassius666

Originally posted by pierregustavetoutant
Governments should have absolutely nothing to do with markets.
Government involvement in the economy is what got us where we are in the first place.

Again with the comparing of elected leaders to the communist system. What exactly did the American goverment do, to get the housing bubble going and making it go global by tying up bad credit into packages sold around the world, apart from deregulating the markets to make it possible I mean?

I really have to vent about Reagan and everybody else who compares goverment involvement of elected leaders to communism. You elected these people to represent your state. If they dont run the show who does? OC, that it is legal to basically bribe congress and buy yourself power is a different issue. I am talking about the way things should be and not the way things are (goverment representing whoever offers the juicy jobs after the therm is up).

edit on 12-12-2011 by Cassius666 because: (no reason given)

I never once made that comparison.In fact its a far leap from anything I wrote. Perhaps I was a bit too succinct.

Here's the answer to your 1st question: Beginning in 1997, Congressional Democrats And B Clinton began pressuring Fannie/Freddie to lower standards of underwriting mortgages so that much riskier loans might be given out. This was due to them wanting more votes from the inner city and rural poor.

However, as banks realized that this could be a cash cow (assuming the bubble never burst), everyone - Repubs included -were on board. Except Ron Paul, who predicted the whole mess long before it happened.

Government involved itself with the economy under the false impression of helping the poor, but was really acting in its own interests via politicians greedy for re-election or banking lobby $$$$. This is always the case when it comes to "compassionate" governments -there aint no such thing.

Never talk about "the way things should be" if you want to be taken seriously. Things are the way they are. You have to make your adjustments based on that fact. Not some desired fantasy.

BTW, Reagan's policies were not that great. He ballooned government spending to levels beyond where it had ever been before, and for no really good reason as the USSR was already long played out and about to do itself in with Afghanistan (something we should consider, but another topic for another time)

Government involvement with the economy began in earnest after the Civil War. Republicans may have been the abolotionists' party but it was also the party of Big Business. Since that time, the federal government ballooned in conjunction with international corporations. It is not a coincidental occurence. They feed each other and need each other. Like co-dependent parents who abuse their children.