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I'm 33. Does that make me an X or a Y?
In other words, regulation beget more regulations because they introduce more moral hazards.
I'm 33. Does that make me an X or a Y?
What's ignorant is the mindless meme of 'deregulation is good' as if that is a universal truth.
The mortgage backed securities were taking housing loans and mixing them with stock speculation. If you want to simplify that into only Citigroup doing it because they did it all inhouse is disingenuous at best. It wasn't legal to package something like that and sell it to a vertical firm either. What do s company mean?
The whole reason we have glass steagall in the 30's is because we have govt backing bank defaults through the FDIC.[/QUOTE]
Government subsidies are not inherently bad either unless you think infrastructure is a waste of time. Private firms have never done that even with the rise of toll roads. Also these issues do not exist in a vacuum. I think it's obvious that the feds forcing those loans knowing they were untenable was part of the problem. That would have been bad enough had it just been left to that.
Instead we added injury to insult because we repeated the same mistake as with the 1929 crash. We allowed those ty decisions to be tied into the entire financial system. Instead of just housing crashing, so did all of the various investments (re: Boomer IRA's) to which they were tied. Last time it was stocks that crashed that destroyed the housing and savings markets. This time it was the housing markets that rendered the rest of it insolvent or entirely gone.
Whatever the this means. You want to talk about intellectual laziness. Your ideological memes are the embodiment of that.The whole reason we have glass steagall in the 30's is because we have govt backing bank defaults through the FDIC.
In other words, regulation beget more regulations because they introduce more moral hazards.moral hazard
Horse . More ideological memes. Ideological memes beget more ideological memes because it has no real tenants to stand on. The state of nature is not a solution. Man is not an inherent benevolent en y.
glass steagall only prevents a single firm from doing both commercial banking and investment banking. That's it, it doesn't stop speculation of mortgage backed securities. Europe doesn't have any type of Glass Steagal, yet they also had similar problems. Well?
btw, moral hazard is not an ideological meme you . It's used in insurance and law.
You are oversimplifying the banking regulation that has been systematically dismantled over the last 30 or so years. It's much more than that one act that was repealed. That wsa just the symbolic nail in the coffin for the intellectually lazy as you like t put it. If you want to believe that such vertical trading was possible even 20 years ago then so be it.
The EU is 27 member states. Acting like they have uniform banking regulations is fun I guess. Their banking system ed up when ours did. Funny how they correlated huh? Europeans can buy US investments and are more apt to when the private credit agencies that you champion misrepresent them.
Laissez fair ws the US policy from inception to around 1929. It was a cluster . Now I am sure that you have another ideological meme about how it wasn't lassez faire enough but that is incredibly naive as to how governments anywhere work. You aren't an anarchist now are you?
And ideological nonsense is now no longer written into law? More intellectual laziness it seems.
Vertical trading itself is not a detriment towards a healthy market. The reason why the housing market crashed had more to do with writing ty loans like ARM loans, which happen irregardless of vertical trading or not.
But here's the conundrum you have. govt wants to regulate the financing industry while at the same time manipulate it to achieve it's own end like increasing homeownership. So what they did was encourage risky behaviour by incentivizing more loans being written and also lowered the interest rate so that borrowing could be cheaper. Thus you have a govt that wants to both stifle the market, yet stimulate it at the same time. In the end we had increased homeowners take risky loan packages that wouldn't pass muster in a free market. Banks wouldn't have incentive to write loans that can't be paid back if they wont be insured by the FDIC. It's a pretty simple concept to grasp.
Moral hazard is a term that dates back to the 19th century insurance industry of Great britian. it's also a term used in general economics. Too imply that it has anCap implications is groundless.
Also, spending for financial regulations by the US govt has risen from 700 mil to 2 billion dollars in from the period of 1979-2001, and that is adjusted for inflation. So no, we don't have a dereg crisis.
No one disagrees that the changing of buyer requirements was a bad idea. There really is no need of personifying the US government by telling us what 'it' wants.
I meant vertical trading of stock speculations with say home loans. And those vertical trades ed the country. That was the whole point, ignorant . WaMu sells a whole load of these ty home loans to and sell them to Goldman Sachs in exchange for a butload of bonds or stocks or what the ever. Goldman in turn takes the 'value of the trade and leverages (re:buys more using the equity) those assets in say the credit industry.
In ig's world such an action would not be a detriment. However in the real world, we saw what happened. The evisceration of the housing assetts destroyed the backing on the stocks and credits. A place like GOldman wa left with nada but the burger and the other two had their assets severaly devalued. This happened across the whole industry. That was they were talking about there was no solvency because there was nothing backing anything anymore. They needed cash to repace that value of all those boomer IRAs wouldve ended up in the crapper.
The only government invtervention was the directive to Fan and Fred to lower interest rates and on homes. The industry took that and built a bomb that blew up everything.
This notion that deregulating the shole mess is quite frankly,stupid.
Next time go to a source other than your op ed.
I need a good laugh, post the link to this. Do you know what the entire federa; budget is? How about you throw in foreign aid next.
I worked in the industry for years. I know all kinds of stupid written in legislation and declarations. We are forced to learn them and relearn them every year.
You in way so much as respond to my response to the last time you said th same idea. To add in the 1800's to try and show it as being less of ideological bull is pure comedy. Shall we explore the word 'moral?' Seems my first response was not clear enough.
Okay, DOK. But what about your narcissistic, holier than thou generation? I would classify Gen X as apathetic, at best, but your Gen is re-writing the book on me first...Moreso than the boomers ever even dreamed. While social media is a net positive, Gen Y has turned it into a religion. If you think is bad now, in terms of a progression from boomer through X, then just wait until your Gen takes over. I'm not defending my generation, far from it, but if you think the western way of life isn't regressing then you're on crack. While you may be an exception, the rest of your gen is several steps below it's predecessor's.
For insight, take a good look at why the Roman empire fell... The US is following that same, tried and true, blueprint.. http://www.salon.com/2012/12/26/8_striking_parallels_between_the_u_s_and_the_roman _empire55
What it amounts to, basically, is an erosion of each generation from one to the next.
While you can point at the boomers as the impetus, and X as a conveyor, Y is further (drastically) eroding what many point to (the 50's) as the high water mark of American civilization (whether consumerism and individual/familial monetary success is an indicator or not, is debatable, of course)
If I rehashed something that's already been addressed, sorry. I only read up to the DOK post
Frankly, one of the major problems is generational myopia. Our civilization is increasingly devoid of both historical perspective, as well as an understanding of who we are, sociologically, today
Narcissistic and holier than thou? Quite honestly you. When you get home and find that your house has been burnt to the groung is it narcissism to hold those that burnt it down in contempt. Boomers have systemically legislated a free ride the entire time they have dominated the electorate. Reagan and Bush jr tax cuts, booting Bush sr out because he tried to be fiscally reponsible. Laughed at Mondale because he wanted to balance the budget. Start tea party shenanigans at the notion that anyone other then them and their medicare get health coverage. Free prescription drugs.
Quite frankly the boomer legacy is the worst since the 1885 or 1905 generation. They lived it up and ed people over from 1929 to 1939. Gen Y has yet to write their legacy so making claims as to what they will become just comes across as self serving fiction. they are just now entering the power structure and being blocked --go figure-- by the Boomer's. Let's see what they do
And calling Y a religion is putting the cart before the horse to say the least. There is no Y credo or doctrine. It's just an observation of thei behavior.
Form what I have found, Y seems more inspired, more willing to share, less willing to the other guy over to get what they want, and less self centered than their forebears. Boomers are just the opposite. Boomer's in particular have a penchant for the 'I got mine so everyone else' mentality. Nevermind how they got 'theirs.'
Went from stopping the Vietnam War, bringing in the primary political system, and civil rights and then left a legacy of taking a big old on the future.
We need a wealth tax in the worst way. Hoarding your spoils at little to no cost to yourself and retaining it on the backs of your children is disgusting. This riding off into the sunset with only paying a small fraction of the bill is unacceptable
And I am more than well aware of the cultural and historical evolution of the US going back to it's inception. Quit painting that broad brush especially in light of your lack of insight of your own.
My generation has nothing left to destroy. We inherited the worst economy since the great depression from the boomers and Gen X, and now they call us lazy and narcissistic because we don't feel like paying for their medicare and social security that they bankrupted with ty politicians they elected. Even if we did, there aren't enough jobs to go around for us to fund it. What exactly should Gen Y be doing differently?
The Western way of life has been declining for 30 years, to blame gen Y for it is extremely re ed since we had no control over anything until the 2008 election when America was already in the ter.
What exactly is gen Y doing to erode America (and don't mention anything prior to 2008 since gen Yers had no influence prior to that year). The 1950s was the high point of America and it was long gone by the time gen Yers were even born, let alone by the time gen Yers had the power to do anything. Blaming people in their 20s for a 30+ year long decline in America makes no logical sense from a simple math perspective, but then again boomers and gen Xers were the ones who put George Bush in office so he could destroy math education.
Gen Yers are narcissistic because we don't wanna pay for the irresponsibility of boomers and gen Xers
And yeah, boomers have done countless hypocritical things in terms of "I got mine but you!"
They went from being the generation of cocaine and drugs to the generation of "just say no!" and went from being the generation that had jobs waiting for them to the generation of "Pull yourself up by your bootstraps!" After being handed a land full of opportunity by the generation that suffered the great depression they've somehow convinced themselves they had a tough upbringing and had to work harder than anyone else when it was the exact opposite.
This conflation of memes is nothing more than a reflection of the subsets of boomers. Each generation is not static nor are they monolithic in thought and purpose. Different sets wax and wane as different stimuli are applied or inflicted. Remember, it was the boomers that transformed the counter-culture from the 50's into a full fledged movement in the 60's....a fleeting phenomenon yeah, (what, 10 maybe 15 years?) but a potent move from the establishment. There was a significant narcissistic component in that movement as well, symple19.Gen Yers are narcissistic because we don't wanna pay for the irresponsibility of boomers and gen Xers
And yeah, boomers have done countless hypocritical things in terms of "I got mine but you!"
They went from being the generation of cocaine and drugs to the generation of "just say no!" and went from being the generation that had jobs waiting for them to the generation of "Pull yourself up by your bootstraps!" After being handed a land full of opportunity by the generation that suffered the great depression they've somehow convinced themselves they had a tough upbringing and had to work harder than anyone else when it was the exact opposite.
And that really is what makes me sad. They took that counter culture and did facilitate more equality for women and minorities. The fall from there is truly a tragedy.
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