Sub-prime Bail Out

[Kitsune]

Originally Posted by Radar

But greedy people bought houses they couldn't afford and flipped them or bought more of them without thinking that the bubble would eventually burst.

...and pure, unrestricted capitalism would change this, how? I tend to think an unchecked market would be a lot worse and the fluctuations would be extremely violent, far reaching, and long lasting. The actions of the stupid and irresponsible will never change and aren't going to go away, regardless what market they're placed into.

Originally Posted by Radar

If we got rid of the unconstitutional federal reserve, they wouldn't control the money supply and we might have something to back up our money rather than the promises of government.

...and go to what, gold? Tell me how we should go about that transition without the market being instantly, dangerously cornered.

[Radar]

Originally Posted by Kitsune

...and pure, unrestricted capitalism would change this, how? I tend to think an unchecked market would be a lot worse and the fluctuations would be extremely violent, far reaching, and long lasting. The actions of the stupid and irresponsible will never change and aren't going to go away, regardless what market they're placed into.

The exact opposite is true. Without government meddling, corrections in the market wouldn't be huge like they are right now. The government tries to prevent corrections and eventually the dam bursts and the money floods out of the market. An unhampered, free-market capitalist market without government interference wouldn't let the pressure build that high. Changes, fluctuations, and corrections would be more slight and more frequent.

The actions of the stupid and irresponsible won't change. The actions of the government to stop people from making stupid decisions for themselves should. Those who make poor decisions should have to live with the consequences of those decisions. This is how we learn to make better choices and to choose our actions more wisely.

It also opens the door for others to benefit by being able to buy a house. Why should those who work hard, save their money, and think carefully about what they will do be forced to pay the bill of others who acted irresponsibly? When those people lose their houses...as they should...the others who saved and acted wisely can move in and buy a house at a more reasonable price.

It's nature. In order for the lion to eat, the gazelle who wanders from the group must die. It also teaches the others to stay close

Originally Posted by Kitsune

...and go to what, gold? Tell me how we should go about that transition without the market being instantly, dangerously cornered.

It doesn't have to be gold. It can be any hard asset or commodity with a limited supply like Diamonds...Platinum...oil....etc.