[ExI] Sudden outbreak of democracy baffles US pundits
avantguardian2020 at yahoo.com
Mon Oct 6 18:31:31 UTC 2008
--- On Sun, 10/5/08, Stathis Papaioannou <stathisp at gmail.com> wrote:
> > I suspect this bailout solution will solve nothing,
> for it leaves in place
> > the root cause: government requirements on banks to
> give out what they
> > already know are bad loans. I find plenty of good
> explanations in the
> > internet commentary, but almost nothing in the
> mainstream press.
Yes, and all the panicked sheep that are selling off their stocks at ridiculous losses and buying Treasury Bills at pitifully low interest rates are fools because they are rewarding the government for the stupid, corrupt, and self-serving policies that got us here in the first place. The U.S. stockmarket will outlive the U.S. government because the whole world has a stake in our markets but most countries would not shed a tear for our government.
> Why not simply admit that boom/bust cycles are a natural
> part of any
> market system? Leave things alone, and there will be a
> depression. In
> a decade or two when people have forgotten about 2008
> they'll start
> bidding up the price of shares and property, banks will
> start lending
> again to get a slice of the long-awaited recovery or risk
> behind and being taken over by more adventurous players,
> high-regulation governments and central banks will be under
> to loosen things up in the interests of boosting economic
> and the whole thing will start again.
I agree with the gist of what you are saying, but it won't last that long. Great Depressions are no longer possible because the markets and everything else react far too quickly to any bit of information in the age of the Internet. What others call a depression, I call a white-sale on blue-chip stocks. And my only regret is that I don't have the money to go on a wallstreet shopping spree. Besides I have other investment priorities at the moment. Fear is useless *after* the bubble bursts because it is too late to sell.
"See them clamber, these nimble apes! They clamber over one another, and thus scuffle into the mud and the abyss."- Friedrich Nietzsche
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