Comments on: Missing Radical Deregulation As a Cause of Crisis http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/ Macro Perspective on the Capital Markets, Economy, Geopolitics, Technology, and Digital Media Tue, 14 Feb 2012 23:28:32 +0000 hourly 1 http://wordpress.org/?v=3.0.5 By: 9/12 Tea Party in Washington DC - Snowboarding Forum - Snowboard Enthusiast Forums http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-216415 9/12 Tea Party in Washington DC - Snowboarding Forum - Snowboard Enthusiast Forums Thu, 17 Sep 2009 09:31:59 +0000 http://www.ritholtz.com/blog/?p=38098#comment-216415 [...] Republican Deregulation Leads to Financial Disaster - Democratic Underground Missing Radical Deregulation As a Cause of Crisis | The Big Picture In your effort to demonize the Democratic party as the reason for every ill in this wolrd, you [...] [...] Republican Deregulation Leads to Financial Disaster – Democratic Underground Missing Radical Deregulation As a Cause of Crisis | The Big Picture In your effort to demonize the Democratic party as the reason for every ill in this wolrd, you [...]

]]> By: mknowles http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-215233 mknowles Mon, 14 Sep 2009 16:50:25 +0000 http://www.ritholtz.com/blog/?p=38098#comment-215233 Tyler Cowen wrote: "Well before the financial crisis erupted, policy makers treated homeowners as a protected political class and gave mortgage-backed securities privileged regulatory treatment." ~~~~~~~~~~~~~~~~~~~~~~~~~~~ It wasn't homeowners who were protected political class, it was bankers. Tyler Cowen wrote: “Well before the financial crisis erupted, policy makers treated homeowners as a protected political class and gave mortgage-backed securities privileged regulatory treatment.”
~~~~~~~~~~~~~~~~~~~~~~~~~~~
It wasn’t homeowners who were protected political class, it was bankers.

]]> By: danm http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-215141 danm Mon, 14 Sep 2009 12:18:15 +0000 http://www.ritholtz.com/blog/?p=38098#comment-215141 primordial_ooze: I never said I didn't agree. But I'm sure many don't. And if you had a debate about it, chances are strong you'd hit a wall. And if we were to debate all the other subsidies, we wouldn't have time to produce any GDP. I'm just saying that every single subsidy can be analyzed, debated and rationalized any single way before getting any semblance of a consensus. The world is grey and the more complext it is the greyer it is. And at the end of the day, the squeaky wheel gets the grease. primordial_ooze:

I never said I didn’t agree. But I’m sure many don’t. And if you had a debate about it, chances are strong you’d hit a wall. And if we were to debate all the other subsidies, we wouldn’t have time to produce any GDP. I’m just saying that every single subsidy can be analyzed, debated and rationalized any single way before getting any semblance of a consensus. The world is grey and the more complext it is the greyer it is. And at the end of the day, the squeaky wheel gets the grease.

]]> By: davver http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-215129 davver Mon, 14 Sep 2009 05:22:13 +0000 http://www.ritholtz.com/blog/?p=38098#comment-215129 You can't regulate a megabank. Once any company, organization, or special interest group reaches a certain level of power it can influence politics in any way it chooses. To believe otherwise is idealistic garbage. The only thing these banks have ever been afraid of is the market. The market can't be bribed. Its time to stop protecting them from the market is the misguided believe that regulators will keep these banks under better control then the real threat of bankruptcy. You can’t regulate a megabank. Once any company, organization, or special interest group reaches a certain level of power it can influence politics in any way it chooses. To believe otherwise is idealistic garbage.

The only thing these banks have ever been afraid of is the market. The market can’t be bribed. Its time to stop protecting them from the market is the misguided believe that regulators will keep these banks under better control then the real threat of bankruptcy.

]]> By: primordial_ooze http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-215126 primordial_ooze Mon, 14 Sep 2009 04:46:21 +0000 http://www.ritholtz.com/blog/?p=38098#comment-215126 @ damn 3:08 On the other hand I don't understand why schools are financed with only property taxes on homeowners. Those of us who rent should share in that. Everyone benefits from having an educated population, as well as good roads, airports, etc. My children will, and I will benefit from social security,medicare, national defense, etc. I don't see why you can't make a distinction between renters and homeowners when it comes to the interest on mortgages. It seems to me that buying a home is an individual choice about how you want to spend your savings, I don't think you should get a tax break for that, especially as it helps to encourage people to spend more than they can really afford, which as we have seen leads to disaster. @ damn 3:08
On the other hand I don’t understand why schools are financed with only property taxes
on homeowners. Those of us who rent should share in that. Everyone benefits from having
an educated population, as well as good roads, airports, etc. My children will, and I will
benefit from social security,medicare, national defense, etc. I don’t see why you can’t make
a distinction between renters and homeowners when it comes to the interest on mortgages.
It seems to me that buying a home is an individual choice about how you want to spend your
savings, I don’t think you should get a tax break for that, especially as it helps to encourage
people to spend more than they can really afford, which as we have seen leads to disaster.

]]> By: jr http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-215125 jr Mon, 14 Sep 2009 04:25:09 +0000 http://www.ritholtz.com/blog/?p=38098#comment-215125 "This is the whole reason economics is a failed discipline: it refuses to acknowledge reality and the interconnectedness of social institutions, preferring to live in an imagined world of mathematical formulae." I could pretend that "economics" as a whole fits into this criticism, but then I'd demonstrate my lack of understanding about economics. Math = today's dominant economic hegemony. But saving grace is that the good guys are on the rise, and will be proven right once again. A priori knowledge trumps monkey math every time. “This is the whole reason economics is a failed discipline: it refuses to acknowledge reality and the interconnectedness of social institutions, preferring to live in an imagined world of mathematical formulae.”

I could pretend that “economics” as a whole fits into this criticism, but then I’d demonstrate my lack of understanding about economics.

Math = today’s dominant economic hegemony. But saving grace is that the good guys are on the rise, and will be proven right once again. A priori knowledge trumps monkey math every time.

]]> By: jr http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-215124 jr Mon, 14 Sep 2009 04:19:04 +0000 http://www.ritholtz.com/blog/?p=38098#comment-215124 "Indeed, many people still seem wed to the wrong belief — it was not too much regulation that caused the problems. Rather, it was the special exemptions from regulation that in reality led to the crisis. " =========== "In Bailout Nation (Chapter 19), my list went something like this: 1. Federal Reserve Chairman Alan Greenspan 2. The Federal Reserve (in its role of setting monetary policy)" http://www.ritholtz.com/blog/2009/06/who-is-to-blame-1-25/ The primary cause was regulation/manipulation of interest rates. Its silly to think the FED can regulate (i.e centrally plan) economic growth through monetary policy (pumping money to regulate/lower interest rates and spurn growth (i.e. to blow debt bubbles)). “Indeed, many people still seem wed to the wrong belief — it was not too much regulation that caused the problems. Rather, it was the special exemptions from regulation that in reality led to the crisis. ”

===========

“In Bailout Nation (Chapter 19), my list went something like this:

1. Federal Reserve Chairman Alan Greenspan
2. The Federal Reserve (in its role of setting monetary policy)”
http://www.ritholtz.com/blog/2009/06/who-is-to-blame-1-25/

The primary cause was regulation/manipulation of interest rates. Its silly to think the FED can regulate (i.e centrally plan) economic growth through monetary policy (pumping money to regulate/lower interest rates and spurn growth (i.e. to blow debt bubbles)).

]]> By: It takes an especially artful kind of lunacy– :: Scoop44 http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-215108 It takes an especially artful kind of lunacy– :: Scoop44 Mon, 14 Sep 2009 02:13:15 +0000 http://www.ritholtz.com/blog/?p=38098#comment-215108 [...] Cowen does it with aplomb in his New York Times column yesterday. My attention came to this through Barry Ritholtz, who gives a calm and reasonable response to Cowen’s rather loopy argument; I think [...] [...] Cowen does it with aplomb in his New York Times column yesterday. My attention came to this through Barry Ritholtz, who gives a calm and reasonable response to Cowen’s rather loopy argument; I think [...]

]]> By: Cunning Linguist http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-215104 Cunning Linguist Mon, 14 Sep 2009 01:57:23 +0000 http://www.ritholtz.com/blog/?p=38098#comment-215104 BR: Please, Please, PLEASE clarify that Radical FINANCIAL Deregulation is a culprit. There are too many sectors of the economy which are over-regulated. Your phrase Radical Deregulation implies that more regulation is always better than less in all sectors of the economy. This is terribly misleading. ~~~ BR: Perhaps I should write a <a href="http://www.amazon.com/exec/obidos/ASIN/0470520388/thebigpictu09-20" rel="nofollow">book</a> covering the subject . . . BR:

Please, Please, PLEASE clarify that Radical FINANCIAL Deregulation is a culprit. There are too many sectors of the economy which are over-regulated. Your phrase Radical Deregulation implies that more regulation is always better than less in all sectors of the economy. This is terribly misleading.

~~~

BR: Perhaps I should write a book covering the subject . . .

]]> By: wunsacon http://www.ritholtz.com/blog/2009/09/missing-radical-deregulation-as-a-cause-of-crisis/comment-page-1/#comment-215079 wunsacon Sun, 13 Sep 2009 20:42:09 +0000 http://www.ritholtz.com/blog/?p=38098#comment-215079 lol, marcus. Don't hold back. lol, marcus. Don’t hold back.

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