Article

2008-09-27 Europe

Sarkozy Advocates Systemic Change After Crisis

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Posted by Fred 2008-09-27 00:00|| || Front Page|| [1 views ] Top

#1 You knew this was coming. The Euro elites have been quietly gloating over our mess, convinced that this is the time to bury free market, democratic capitalism. Their friends in the Democratic party here at home agree. Particularly if Senator Obama wins the election, you can kiss free capital markets good-bye.

Posted by Steve White 2008-09-27 11:31|| 2008-09-27 11:31|| Front Page Top

#2 On an aside, I hope this is informative for all those who might have been duped by the msm image of sarko being a "reformer" and a "Reagan rethread".

Posted by anonymous5089 2008-09-27 12:11|| 2008-09-27 12:11|| Front Page Top

#3 It's nice to know that stuff like Sarbonnes-Oxley was just a figment of my imagination.

Posted by Abdominal Snowman 2008-09-27 12:39|| 2008-09-27 12:39|| Front Page Top

#4 Exactly the wrong solution, but it's the only solution they know. Example, in the Great Depression in the US, it wasn't the market to blame, it was the ability to leverage the market with margin sales.

In this case, the fault is not in the self-regulated market, but in the unregulated market, again the leverage market. Today, to a great extent, we regulate margin sales in the market, but we neglected the extremely leveraged credit market.

This means that in the future, with some additional regulation, the bottom line will be that credit *at all levels* will have to be regulated. This means individuals and corporations and the US government itself.

As the saying used to go, "You can't have credit unless you don't need it." This literally means that in the future, the US government will only be able to borrow with 100% collateral of tax revenues already in hand. If they want $1M, then they must already have $1M plus interest. So there is no reason for them to bother taking debt in the first place.

Posted by Anonymoose 2008-09-27 13:42|| 2008-09-27 13:42|| Front Page Top

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