Comments on: Depressions can be avoided http://blogs.reuters.com/edward-hadas/2012/06/06/depressions-can-be-avoided/ Wed, 07 Oct 2015 17:23:32 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: SlavikSobol78 http://blogs.reuters.com/edward-hadas/2012/06/06/depressions-can-be-avoided/comment-page-1/#comment-589 Sat, 09 Jun 2012 01:36:50 +0000 http://blogs.reuters.com/edward-hadas/?p=251#comment-589 Driving is a type of activity where all citizens are exposed to risks regardless of sociodemographic standing while using public roads by miscreants who neither value their own lives nor others around them. Hence, a common objective to make the roads safer has been achieved over the decades.

Financial industry in the United States has consolidated very profoundly and as the result so did the power through lobbying and funding politicians to facilitate their objectives where the controllers agenda consists of nothing else besides impressing shareholders by beating quarterly earnings estimates and compensating themselves with extremely lucrative annual renumeration in salary and bonuses to the best of their abilities. 

In the first situation the collective goals of an  entire society are aligned and have been achievable. Although, in the past automobile manufacture did strive to cut corners by designing unsafe cars from structural engendering prospective to save on manufacturing expenses. Now automobile safety is a good selling point adventurous to the auto manufactures interests. Therefore, the resistance to NTSB mandates has been largely eliminated. In the second arrangement,  the majority of American congressmen are reliant on campaign contributions from the financial sector to fund reelection campaigns and strive to water down the regulatory framework that is deemed undesirable to the interest of very valuable corporate constituents.  How do you see the reconciliation of objectives and interests  between public at large and a small number of individual whose entire mentality is frequently permeated with  a very short timeframe horizon regardless of systemic risks that are taken in the course of business?

]]>
By: SlavikSobol78 http://blogs.reuters.com/edward-hadas/2012/06/06/depressions-can-be-avoided/comment-page-1/#comment-588 Fri, 08 Jun 2012 17:31:39 +0000 http://blogs.reuters.com/edward-hadas/?p=251#comment-588 Driving is a type of activity where all citizens are exposed to risks regardless of sociodemographic standing while using public roads by miscreants who neither value their own lives nor others around them. Hence, a common objective to make the roads safer has been achieved over the decades.

Financial industry in the United States has consolidated very profoundly and as the result so did the power through lobbying and funding politicians to facilitate their objectives where the controllers agenda consists of nothing else besides impressing shareholders by beating quarterly earnings estimates and compensating themselves with extremely lucrative annual renumeration in salary and bonuses to the best of their abilities. 

In the first situation the collective goals of an  entire society are aligned and have been achievable. Although, in the past automobile manufacture did strive to cut corners by designing unsafe cars from structural engendering prospective to save on manufacturing expenses. Now automobile safety is a good selling point adventurous to the automobile manufactures interests. Therefore, the resistance to NTSB mandates has been largely eliminated. In the second arrangement,  the majority of American congressmen are reliant on campaign contributions from the financial sector to fund reelection campaigns and strive to water down the regulatory framework that is deemed undesirable to the interest of very valuable corporate constituents.  How do you see the reconciliation of objectives and interests  between public at large and a small number of individual whose entire mentality frequently is permeated with  a very short timeframe horizon? 

PS  I realize this is “slightly” off the topic because nowhere in this article can any reference to Canada be found. However,Canadian banking industry is safe and sound due to a very solid regulatory framework,  untainted by legalized corruption arrangement that is practiced in the US at this time. There is no doubt that if people in Canadian financial industry were given an opportunity to overleverage  and invent complex financial instruments with tax payers underwriting the risks in case of some “unforeseen” event such as sliding real estate assets valuation, then it would result in the same financial debacle which we have here in America now. People are fundamentally the same everywhere in the world. The vague notion of a moral hazard will never be taken into consideration in situations where people can generate vast sums of money quickly if the circumstances provide such opportunities.

]]>
By: Sanity-Monger http://blogs.reuters.com/edward-hadas/2012/06/06/depressions-can-be-avoided/comment-page-1/#comment-584 Thu, 07 Jun 2012 16:49:34 +0000 http://blogs.reuters.com/edward-hadas/?p=251#comment-584 I agree wholeheartedly that our economies can be managed far better, but we must be realistic about the barriers we face in achieving it. Defeatism is part of it, but far more fundamental is the anti-government hysteria that has infected us for decades now. When I say “anti-gevernment” or course I mean “anti-the-kind-of-gevernment-that-I-don’ t-like”. No problem to have government provide limited-liability, ludicrous intellectual property protectionism, “free” trade that protects my job but not yours, and don’t forget “tort reform” so that economic actors don’t have to be responsible for damage they do. But to regulate financial shenanigans? It’s against some sort of law of nature.

]]>
By: IanKemmish http://blogs.reuters.com/edward-hadas/2012/06/06/depressions-can-be-avoided/comment-page-1/#comment-583 Thu, 07 Jun 2012 11:52:40 +0000 http://blogs.reuters.com/edward-hadas/?p=251#comment-583 The proposition that the clever people of previous generations were too stupid to uncover the underlying mechanisms while we can do this with ease seems frighteningly reminiscent of the faith people put in the correctness of option pricing models in the 1990’s and risk models in the 2000’s. Iif history proves anything, it proves that we are on average a lot dumber than the smartest people of previous generations.

And the road death analogy seems pretty irrelevant – there isn’t a cadre of people who stand to profit by gaming the system and increasing the number of road deaths. There are people who stand to gain from oscillations in the rate of growth.

]]>
By: smanchwhich http://blogs.reuters.com/edward-hadas/2012/06/06/depressions-can-be-avoided/comment-page-1/#comment-582 Thu, 07 Jun 2012 10:36:26 +0000 http://blogs.reuters.com/edward-hadas/?p=251#comment-582 I do not share Mr. Hadas’ faith in the government to make the right decisions. I believe the government has the ability to nudge the economy one way or the other, but it would take both parties working together against the river of influence the financial industry wields.

Right, wake me up when that happens.

Before the financial crisis, the top 5 banks controlled 40% of the money in the States. After it, the top 3 banks control 60%. Awesome.

Also, it is partly because of regulation that no one can get a loan to do anything, even well-qualified applicants (Read: capital ratio requirements).

]]>
By: KyuuAL http://blogs.reuters.com/edward-hadas/2012/06/06/depressions-can-be-avoided/comment-page-1/#comment-581 Thu, 07 Jun 2012 05:10:08 +0000 http://blogs.reuters.com/edward-hadas/?p=251#comment-581 One word: Regulation.

Implement the proper regulatory measures, to prevent markets from running amock, and creating market bubble conditions which would ultimately collapse.

]]>
By: Lord_Foxdrake http://blogs.reuters.com/edward-hadas/2012/06/06/depressions-can-be-avoided/comment-page-1/#comment-580 Wed, 06 Jun 2012 21:39:20 +0000 http://blogs.reuters.com/edward-hadas/?p=251#comment-580 “booms and declines are inexcusable … Governments are well informed, dominate the economy and have full monetary flexibility”

So if economist are well informed and governments rational depressions and excessive booms shouldn’t happen? Right? Is that your question?

Well, now that we’re off the sex debacle and back on well trodden soil, I’ll take a gander.

Perhaps, as the above quote illustrates, the problem is with the government’s themselves and the economists they choose to listen to?

Ask a dozen economists what the problem is and get 12 different answers, and they are all wrong.

I think Paul Krugman is RIGHT and everyone else is WRONG.

Why? Because of ideology. If your economics is informed by ideology it’s as bad as if your science is guided by religion or perhaps mysticism.

The NEO-CONS are crazy. They are literally INSANE. They are RAPING the people and attempting “social engineering” on a global scale, attempting to create some kind of hyper-capitalist utopia. A Brazil with 10% unbelievably wealthy 10% filthy rich and the remaining 80% dirt poor.

The new Aristocracy. The Plutrocacy.

This “depression” is all part of the plan.

And I know everyone said George Bush had nothing to do with 911 (and I tend to agree because the man is retarded) but I find it hard to be that no one knew and wanted it to happen.

And what was the Bush economic response to 911? To run huge deficits, give massive un-necessary tax breaks to the wealthy and the middle-class and effectively create a situation where WHEN the “depression” finally hit, the government would be so far in debt, it couldn’t fix it with keynesian economic theory.

And who wanted this?

The NEO-CONS and the right-wing (dare I say fascist) economists swho SHILL for them.

So, in summary. Yes, they have the information. They know the score. They know what to do right and they chose to do the WRONG thing, if it is politically self-serving.

They are, simply, pieces of shi’te.

]]>
By: stevedebi http://blogs.reuters.com/edward-hadas/2012/06/06/depressions-can-be-avoided/comment-page-1/#comment-579 Wed, 06 Jun 2012 21:17:58 +0000 http://blogs.reuters.com/edward-hadas/?p=251#comment-579 Comparing driver safety to economic cycles has got to be the farthest out article I’ve seen. The last thing we need is some bureaucrat telling the public what it should do, or how much it should make for income. This article is just covering up for a socialist philosophy, where people should not be allowed to make more than their “fair” share (in this case for some purported ‘good of the economy’). I suspect the author doesn’t even realize he is coming from that angle.

The clue is his use of moral terminology in what should be an article on economics.

]]>