On Thu, 07 May 2009 21:22:49 -0500, cavelamb
wrote:
John R. Carroll wrote:
"cavelamb" wrote in message
m...
Joseph Gwinn wrote:
The title is the thesis. About the author:
Mr. Posner is a federal circuit judge and a senior lecturer at the
University of Chicago Law School. He is the author of the just-published
"A Failure of Capitalism: The Crisis of '08 and the Descent into
Depression" (Harvard University Press).
http://online.wsj.com/article/SB124165301306893763.html
The Wall Street Journal, 7 May 2009, page A17.
Joe Gwinn
------
Fascinating...
Perhaps, but it's largely nonsensical and in some instances, just
innacurate.
Posner apparently doesn't understand what constitutes a "demand deposit"
account.
He's right about one thing, at least. What we are seeing in the worlds of
finance and economics coldn't have happened without the active and passive
assistance of government.
JC
-------
John (et al),
At what point does it become possible to "just say no" to government involvement?
------
When you are not depending on the government to keep your
businesses from collapsing, your buildings from burning down,
etc.
The banks (commercial and investment), quasi banks, brokerages,
insurance companies, credit card companies, etc. created this
entire asset bubble problem, putting the world on the verge of an
uncontrolled deflation/depression and now everyone is paying the
price.
The "stress test" results are out, but the single most important
comment/observation IMNSHO is that "Together, the 19 firms that
took the test hold two-thirds of the assets and half the loans in
the U.S. banking system."
http://news.yahoo.com/s/ap/20090508/...1bIdjmK yBhIF
Note that one of the 19 is GMAC which is now a bank [now wholly
owned by Cerberus]. GMAC is expected to play a key role is the
financing of both Chrysler and GM vehicle purchases and leasing,
but was heavily involved in sub prime lending under Diatech
Funding and ResCap [Residential Capital]. By all objective
standards GMAC is bankrupt, but is likely to get another big wad
of taxpayer cash.
for complete report [and free eye test] see
http://static.reuters.com/resources/...r_20090507.pdf
also for Reuters analysis see
http://www.reuters.com/article/ousiv...5463T820090508
Unka' George [George McDuffee]
-------------------------------------------
He that will not apply new remedies,
must expect new evils:
for Time is the greatest innovator: and
if Time, of course, alter things to the worse,
and wisdom and counsel shall not alter them to the better,
what shall be the end?
Francis Bacon (1561-1626), English philosopher, essayist, statesman.
Essays, "Of Innovations" (1597-1625).