[extropy-chat] Redistribution of wealth

[Mike Lorrey]

--- Adrian Tymes <wingcat at pacbell.net> wrote:
> 
> FMI - one of the resulting reforms was that the banks
> no longer got to call in loans on otherwise credit
> worthy people, no matter what the status of the banks'
> other loans, right?  Thus preventing that specific
> disaster from happening again.

Actually, no. Ever hear of the S&L crisis? That was another cascade
chain of loan recalls. Now, some say that certain groups/organizations
purposely tweak market conditions in order to create these events so
that they can seize mass amounts of property, but I think it is more a
matter of markets either drifting out of baysean conditions, or getting
buggered by unexpected legislation/regulation/regulators (like the
Telecom Reform Act of 98 buggered the internet bubble).

THe key reform following 1929 was that it was made a lot harder for you
to borrow money to invest in the market. You have to have real assets
behind any such loan now, and those assets have to exceed the value of
the loan so that they can't be devalued too much by any market collapse.

=====
Mike Lorrey
Chairman, Free Town Land Development
"Necessity is the plea for every infringement of human freedom.
It is the argument of tyrants; it is the creed of slaves."
                                         -William Pitt (1759-1806) 
Blog: http://www.xanga.com/home.aspx?user=Sadomikeyism


		
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