Comments on: Capitalism is Dead

By: vidyohs

vidyohs — Sun, 13 Jul 2008 18:11:30 +0000

E.J. Dionne and his knowlege/understanding of capitalism can be summarized in one word.
Stupid.

By: Brent Anderson

Brent Anderson — Sun, 13 Jul 2008 13:49:13 +0000

"Mises was right." -- Robert Heilbronner

Is 1989 that far gone?

By: Per Kurowski

Per Kurowski — Sun, 13 Jul 2008 08:20:54 +0000

“We need regulation, because the herd of managers of other people's money will, regardless of the information available to them, always crowd into the worst of the boom's excesses -- leaving the taxpayer to bail out the system.”
Posted by: Ellen1910 | Jul 12, 2008 10:06:23 PM

The irony though is that in this case it was the regulators, through their outsourced risk measurers, the credit rating agencies, that induced the herd to run over the subprime precipice.

By: Per Kurowski

Per Kurowski — Sun, 13 Jul 2008 08:16:49 +0000

“Prices are information. In this particular financial example, you assume that absent the ratings agencies, no pricing would occur. This is false.”
Posted by: Mesa Econoguy | Jul 12, 2008 5:51:27 PM

If you jusr read I say the opposite. Absent the “official” risk content specifications provided by the credit rating agencies the market would have worked a lot better, the pricing would have been more correct, and the subprime mess would never have happened.

By: Ellen1910

Ellen1910 — Sat, 12 Jul 2008 22:06:23 +0000

As long as the music is playing, you’ve got to get up and dance. Chuck Prince, CEO Citigroup

Worldly wisdom teaches that it is better for the reputation to fail conventionally than to succeed unconventionally. John Maynard Keynes

We need regulation, because the herd of managers of other people's money will, regardless of the information available to them, always crowd into the worst of the boom's excesses -- leaving the taxpayer to bail out the system.