Tuesday, September 30, 2008

Markets are working just fine – it’s government that has failed

Markets are working just fine – it's government that has failed

The fall-out from the failed Wall Street rescue package will be brutal. But there could yet be a silver lining, says John Stepek. We might just be seeing the end of big government.

Posted by damien @ 10:31 AM (1009 views)
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12 thoughts on “Markets are working just fine – it’s government that has failed

  • Government has certainly failed ‘the people’ but the whole premise is wrong… despite all the free market hype ‘capitalists’ need goverment to protect their interests… they only don’t like meddling when it effects their ability to make profit… what might be finally on the way out is national government… inevitably this will lead to supernational institutions.

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  • This article is a deranged denial of facts. The markets were pretty much left to themselves and they froze up like they always do eventually.
    Not intervening to unfreeze them will cause a continuous unending 1930’s style slump.
    Its what will happen no question.

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  • I’m not sure whether to describe this article as sick, mad or evil. Where is ‘big government’? Unless I have been dreaming since 1979, all we have had is governments falling over themselves to be the party of small government and legislating accordingly. If you think financial deregulation is not to blame for the present crisis you are not living in reality. I’d love the banks to go to the wall were it not for the fact that your, my and everyone else’s savings and futures are caught up in them. That and the fact that there may be a real social collapse if the author’s dreams come true and the government ends up defaulting on social security payments and public healthcare. Naomi Klein warns that the present crisis will be used as an excuse to bring in even more radical free-market and pro-corporate policies. On the evidence of this pernicious nonsense she is right.

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  • Markets haven’t failed – Really!. The fault does lie with the irresponsible lenders, the irresposible borrowers and also the irresponsible, feckless government supporting the whole mess. The real problem in the wetern world at the moment is the marginalisation of anyone that views the world as evidence based as opposed to image based – our societies disdain for scientists, engineers, anyone that is concerned with performance over spin, etc. Nothing is anyone’s fault any more. We live in a society where we seem to treat as a positive trait of personality someones ability to talk their way out of a paper bag and pass the buck onto someone else. Fraudsters rule. Hence the f*cking mess we’re in.

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  • planning4acrash says:

    No. If interest rates had been set by an unmanipulated LIBOR, we wouldn’t have had the boom or bust. International structures is more of the same. Not a solution.

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  • So much for the grasp of reality of “expert”s. But it is a new trend in “liberal market” reporting.
    There was/is no market failure.
    The markets were not allowed to be “efficient” or “free” e.g. because of the distorting influence of such institutions
    as Fannie Mae and Freddie Mac.
    How far people will go to protect a theory

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  • P4AC and mken are right. I am astonished at some of the views of people appearing on here over the last few days.

    i. Government now and government past caused these issues with interference and regulation. Fannie Mae and Freddie Mac and Central banking-set interest rates are the 2 main causes.
    ii. Free markets REQUIRE REGULATION; no advocate of free markets who understands them says otherwise. The lack of regulation in the corrcet areas – of fairness and consistency has indeed caused this problem. That is Government’s failing, not the market!
    iii. Further interference will cause further problems, and draw out this crisis by fundamentally failing to create value.
    iv. ‘Where is big government’ from NickB – holy cow, where do you live? We have had a labour government for over a decade that has increased the tax take enormously, and OVER HALF of the country is employed directly or indirectly by the state! How big do you want the government to be?

    We need sound fiscal policy, managed by people who know what they are doing, and planned for the long term. This does not preclude left or right political leanings.

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  • (I agree with mken unless mken was being sarcastic – do we need a long explanation of why FM&FM caused this problem, due directly to government intervention?)

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  • Boogsie woogsie woo. The markets can’t look after themselves and need help. Bless.
    B*llocks!!!!!!!!!!!!!!!! Perhaps the govt should be responsible for wiping their arses as well.

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  • erm… that was informative.

    I agree with your earlier comment about reponsibility – those responsible should be brought to account.

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  • planning4acrash says:

    Bear. Yes, astounding comments. But, the crash should bring people 2 the alternative media, so we have many here who are ready to listen to those who were right, but they missed the previous years of deliberation, so are in the dark.So expect more debate!

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  • beartil2010

    We’ve had a labour government that has introduced minimum wages (good) and fiddled around with various stealth taxes and tax credits. They did not do even 1/4 of the things they argued for in opposition during the Thatcher years, like reverse damaging privatisation, make taxation more progressive or introduce credit controls or other much needed financial regulation. They presided over the continued running down and marketisation of public services. PCTs anyone? Even people who work in the NHS don’t trust it any more. Privatised post office that is closing branches everywhere and no longer provides a decent service. Rubbish collection once every two weeks. Private finance initiative anyone? Ideologically New Labour are no different from Thatcherites. Half the population working for the government, you say. Interesting, can you back that up with some figures? Even Thatcher did not succeed in introducing small government, in terms of overall spending, but in cutting services she ended up having to shell out enourmous sums in benefits and other ways of picking up the pieces.

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