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Lovely Rant By A Dismayed Yank

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[A reply to a post on Cluster****** by Cash]

Stupid ideas are like viruses that pass from brain to brain and Obama is no less susceptible to infection than the rest of us.

One such stupid idea is that economics as an academic field and as a profession has just one thing worth saying other than there's no such thing as a free lunch and another stupid idea is that firms such as Goldman Sachs and its Wall Street brethren are populated by the "best and the brightest".

Both ideas are ******** of the highest order yet they were generally accepted by the great and the wise and so now we find ourselves in the financial mess we're in.

What does Obama know anyway? He's a lawyer by training so who is he to go against the well considered advice of financial heavyweights like Bernanke, Larry Summers and all the great brains of Wall Street and Ivy League universities. Obama, like everyone else, is infected by their ideas and acts accordingly.

Are we going to clamp down on the financial lunacies that brought us here? No. For example, do we need a market in credit default swaps? Of course not. Should anyone be able to buy a CDS and therefore buy insurance against the possible default on bonds they don't even own? Of course not, the idea is just plain laughable. Yet we have it and it's legal.

I've heard nothing about abolishing such an absurd practice. The talk is of regulation, of "transparency" or maybe of not allowing certain banks to trade in certain derivatives. The justifications are complex, intricately reasoned, require leaps of mind twisting logic that no reasonable person could accept.

You see, they tell us, a market in CDSs provides "liquidity", you see, it reduces "systemic risk". What, you don't know what they're talking about? That's ok, don't feel inadeqate because neither do they. All those Wharton and Harvard degrees are just parents' money pissed into the wind.

What we got was wild ass speculation and, far from reducing systemic risk, we got speculative blow outs of monumental proportions, taxpayer funded bailouts or should we say Chinese funded bailouts, seeing as western govts are dead broke.

In business and finance you are judged by your results. Fine, so judge the titans of Wall Street, of our central banks and the business world by their results which are ******ed. When you hear them speak, don't listen, in my humble opinion they are totally full of shit and you cannot trust one damned thing they say.

Author Profile Page Smokyjoe | June 14, 2010 12:57 PM | Reply

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  • 401 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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