When the Economy Really Did ‘Fall Off a Cliff’

[Ian G]

On 23/3/09 12:44, R.A. Hettinga wrote:
>
> The elephant in the room here is that if the government was completely
> excised from the financial system, the financial system would eventually
> have more than enough resources to fix itself at times like this. Or,
> better, prevent times like this from having their magnitude viciously
> amplified by government action, at least.


Or, they would amass the resources to take over the government, and 
control the system (both political and financial) to protect themselves, 
and thus ensure the next crash.

The problem with this entire libertarian wetdream is that asking anyone 
to keep his fingers out of the pie is simply against human nature.


> It'll probably take a crash government *can't* fix to prove that point,
> however, and we may be here now.


I think it an open question as to whether "the government" fixes any 
real crash ... of course they run around in circles and declare victory 
as fast as they can talk.  But do they fix anything?  Do they ever make 
anything better?  I can think of one positive law / fix in recent 
history, being SB1386.  That stands out like a sore thumb, everything 
else has been wasteful or made things worse.



iang