[OPP]

Proculation Proculation:

OPP OPP:

Without regulations, capitalism is anarchy.

Wow, we agree here

Now, the only regulations needed here is to enforce private rights and punish those who do not go by the free market rules.

You're talking laws. A healthy economy needs both laws and regulations.
What exactly is "free market"? Free to the sense that conglomerates should be able to establish monopolies? Tell me of this free market utopia of yours.

[Proculation]

Wikipedia Wikipedia:

A market economy is a social system based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand.

Free in the sense of "freedom".

[romanP]

BartSimpson BartSimpson:

sandorski sandorski:

sigh, it seems to be needed to state again: Freddie and Fannie did not cause this problem! De-Regulated Private Banks made all these Loans, not because Government Regulation forced them to, but because Government Regulation stopped Preventing them from doing so.

Read and learn:

http://en.wikipedia.org/wiki/Community_Reinvestment_Act

If anything written on wikipedia is to be believed, perhaps you should do that yourself. Maybe, y'know, read past the opening paragraphs:

$1:

The law emphasizes that an institution's CRA activities should be undertaken in a safe and sound manner, and does not require institutions to make high-risk loans that may bring losses to the institution.

In fact, it seems as if it was not the CRA's fault for existing that caused this problem. The CRA seems to have been designed to prevent and discourage banks from giving out high-risk loans, and did just that. It seems that it was independant mortgage companies not regulated by the CRA that were giving out these high-risk loans.

[romanP]

BartSimpson BartSimpson:

Scape Scape:

The securitization is what cause the mortgage meltdown CRA was a sideshow. When you bundle everything triple AAA it had the effect of luring people into house they could never afford. When these sales are set up and done in a matter of weeks for sales that are intended to be paid over a term of decades oversight got stripped away. When these bundles got sold off they got bundled with junk and in the end that made everything worthless.

I don't dispute that. As I said, pricks on Wall Street took advantage of a well-meaning law that had some fatal flaws in it.

The law works. It was deregulated banks that were giving out high-risk loans. Mehtinks you've been listening to Ron Paul too much, and that Ron Paul doesn't seem to understand the law.

[OPP]

Proculation Proculation:

Wikipedia Wikipedia:

A market economy is a social system based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand.

Free in the sense of "freedom".

Freedom to do what? I know what a market economy is. I'm asking, how would you define a "free market"? Without regulations? Is that it?

[romanP]

BartSimpson BartSimpson:

Scape Scape:

But you are rearranging chairs on the titanic at that point Bart, you are not addressing root cause.

I am. I'm saying that as well-meaning as the CRA was it needs to be repealed

So you advocate deregulation so that more banks can give out high-risk loans?

[romanP]

PluggyRug PluggyRug:

OPP OPP:

Let me put this simply.. Nationalism, intolerance, racism = Right-wing triats. Solidarity, equality, tolerance = Left-wing traits.

May I take exception to that conception. The obvious read.....Intelligent common sense = right wing traits, genetic flaws = left wing traits.

Pseudonym, witness dehumanisation.

[Proculation]

OPP OPP:

Proculation Proculation:

Wikipedia Wikipedia:

A market economy is a social system based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand.

Free in the sense of "freedom".

Freedome to do what? I know what a market economy is. I'm asking, how would you define a "free market"? Without regulations? Is that it?

No. By free market I told you from the definition of Wikipedia.
Maybe I should add something like: "A free market is a market that is free of government intervention and regulation, besides the minimal function of maintaining the legal system and protecting property rights".

Free in the philosophical meaning of "freedom". Regulations are important but they should not interfere in a "trade" between two willingly individuals.

[romanP]

Proculation Proculation:

OPP OPP:

Without regulations, capitalism is anarchy.

Wow, we agree here

No you don't. You said that capitalism regulates itself. Capitalism shouldn't require outside regulation if it can regulate itself.

[Proculation]

romanP romanP:

Proculation Proculation:

OPP OPP:

Without regulations, capitalism is anarchy.

Wow, we agree here

No you don't. You said that capitalism regulates itself. Capitalism shouldn't require outside regulation if it can regulate itself.

It was not me who said that. It was Pseudonym.

[Pseudonym]

Tee hee.

[romanP]

Proculation Proculation:

romanP romanP:

If capitalism is self-regulating, why doesn't it control itself better? This economic downturn should not be happening, by your logic. I should not be laid off and worrying about whether I'll be able to pay rent in a couple of months when my savings and EI run out while I scramble to look for another job.

Not true. There will always be economic cycles.

I didn't get laid off because of an economic cycle. I'm laid off because of an economic downturn that didn't need to happen, but did because of deregulated banks. As a result, my workplace is now receiving a very low volume of work, and is quieter than anyone who has worked there for several years has ever seen it, because the companies that we would normally get contracts from are pulling back due to severe profit losses.

[romanP]

Proculation Proculation:

Wikipedia Wikipedia:

A market economy is a social system based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand.

Free in the sense of "freedom".

Freedom is what sense?

[Proculation]

romanP romanP:

Proculation Proculation:

romanP romanP:

If capitalism is self-regulating, why doesn't it control itself better? This economic downturn should not be happening, by your logic. I should not be laid off and worrying about whether I'll be able to pay rent in a couple of months when my savings and EI run out while I scramble to look for another job.

Not true. There will always be economic cycles.

I didn't get laid off because of an economic cycle. I'm laid off because of an economic downturn that didn't need to happen, but did because of deregulated banks. As a result, my workplace is now receiving a very low volume of work, and is quieter than anyone who has worked there for several years has ever seen it, because the companies that we would normally get contracts from are pulling back due to severe profit losses.

The economic downturn was due to happen BECAUSE of the economic cycles. The economy was running on steroids for some years and it had to go down (economic cycles). I also lost my job btw ! It's about the same conditions as you.

[Proculation]

romanP romanP:

Proculation Proculation:

Wikipedia Wikipedia:

A market economy is a social system based on the division of labor in which the prices of goods and services are determined in a free price system set by supply and demand.

Free in the sense of "freedom".

Freedom is what sense?

Like I said earlier on this thread, in the philosophical sense.