unclej0

Wall Street Breakfast: Must-Know News

The price of stability, as in any dynamical system, is properly designed control. Unfortunately, human beings have not yet learned to stabilize economic activity A large part of the problem is ideological. The nearly religious belief in the "invisible hand" of the market bears no relation to reality; it holds only for idealized models.

Human behavior does not exclude irrationality and cheating. Where, in the idealized model do we find monopoly, cartels, insider trading, deception, excesses of greed and fear, externalizing costs through pollution, conditions near slavery in many parts of the global labor market, etc.

Government intervention can reduce the worst offenses but governments are considerably influenced by the worst offenders. We have a lot to learn.


On Jan 02 10:01 AM JasonR wrote:

> "Investors, meanwhile, are hoping 2009 brings a turnaround, but aren't
> counting on one."
>
> Sure glad we have the Wall Street Journal to tell us investors what
> we want. Buffett seems to be the only voice of sanity in a sea full
> of weasels whining for a bailout. I, for one, don't care how the
> market performs in 2009. I am much more concerned about my government's
> intervention in the automobile, housing, banking, steel, healthcare,
> and whatever other industry I didn't think of. If all the cries for
> a bailout were dismissed at the beginning, by now we would be halfway
> out of the storm and looking forward to a full-fledged recovery.
> Americans apparently prefer stability, but stability comes at a price.
> Nothing is free.

Wall Street Breakfast: Must-Know News

There has always been a power elite. That is a given in human societies because of human nature and human culture.

That said, the power of the elite has always been opposed and, when the elite oversteps the mark of common sense and prudence, social instability sets in. If the instability does not result in bloody violence, there is a chance that conditions may be rationalized for some time.

This may be such a time. I don't expect miracles but I am hopeful.

Automakers: A Pitiful Trio

The government is what we make it. Those who contrived to make GW Bush president have much to answer for.

Modern economics is complicated stuff. Government controlled by ignorant and highly opinionated ideologues of any stripe is a disaster waiting to happen.

Automakers: A Pitiful Trio

This article is bull, piled high and deep, as were Ayn Rand's novels glorifying capitalists as supermen.

The common good of the nation is properly the business of government, which should permit private enterprise to thrive when it is properly conducted, but to intervene when it threatens the economic well-being of the nation.

The housing bubble, the excessive risks undertaken in the financial sector, and the failure of the American automobile manufacturers to lead in the development of new technologies (oh, how they and their lobbyists resisted!) all cried out for government intervention years ago.

We are now reaping the bitter harvest sown for us by the ideological deregulators. Ideologies are a smokescreen to subvert rationality and pragmatism. Fortunately, Barack Obama has recognized that truth.

Why Bailouts Are Not the Answer

Doesn't increased savings require discretionary income?

The government can either pay for unemployment or it can build infrastructure and create jobs. I'd rather have the infrastructure.

We do need intelligent government intervention. Paulson, however, is the poster boy for bailing out deadbeats. The sheriff is in cahoots with the outlaws. That seems to be the rule in the Bush administration.