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In Reply to: RE: I've seen that quote attributed to everyone from Ben Franklin to Einstein. The simple... posted by regmac on October 28, 2014 at 08:31:41
has been "laissez-faire," keep government out of business.
You are saying we NEED government to interfere. That is contra-conservative ideology. I am not arguing, not saying whether that's right or wrong. I am pointing out the defining economic mantra of the Republican Party, that's all.
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"has been "laissez-faire," keep government out of business.
You are saying we NEED government to interfere. That is contra-conservative ideology. I am not arguing, not saying whether that's right or wrong. I am pointing out the defining economic mantra of the Republican Party, that's all."
Conflating traditional conservatives with Republicans is a common mistake. That said, I'm unaware of **any** conservative or Republican advocating zero banking regulations. Perhaps you would be good enough to point out a few.
Libertarians are another matter. A libertarian friend I have coffee with insists the financial meltdown we suffered in 2008 was made possible by the presence of government meddling and interference. He blames the housing/debt bubble on central banks and dubious U.S. programs to encourage home purchase. Moreover, he faults the existence of consumer protection acts such as the FDIC for making people less careful with their money and hence banking CEO's less careful about taking the proper risks where their customers are concerned.
Lastly, he faults the government for forcing taxpayers to bail out the Wall Street bankers, insisting that if there were no government backstop bankers would be more cautious with their investments. Therefore, he argues, it was gov't intervention that caused the crisis. This isn't the same thing as "regulation" per se but you get the point: Libertarians loath all forms of gov't intervention.
I can’t say I agree with him 100% but he offers some interesting observations. Moreover, a panel of economists on Maria Bartiromo’s show the other evening acknowledged that free money from the Fed has caused the past two market meltdowns. But what really got my attention was the unchallenged comment of one economist who said the leveraging we see today is as deplorable as the leveraging that existed in 2008. That's troubling.
The Panic of 1792 was a financial credit crisis that occurred during the months of March and April of 1792, precipitated by the expansion of credit by the newly formed Bank of the United States as well as by rampant speculation on the part of William Duer, Alexander Macomb and other prominent bankers. Duer, Macomb and their colleagues attempted to drive up prices of US debt securities and bank stocks, but when they defaulted on loans, prices fell causing a bank run. Simultaneous tightening of credit by the Bank of the United States served to heighten the initial panic. Secretary of the Treasury Alexander Hamilton was able to deftly manage the crisis by providing banks across the Northeast with hundreds of thousands of dollars to make open-market purchases of securities, which allowed the market to stabilize by May of 1792.
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