@Mr Fight the Power,
Mr. Fight the Power;53720 wrote:This is all superficial pandering until the basic economic structure and methods of state intervention are changed.
Well, some more attention to history would show that the tax scheme under Clinton (which Obama is more or less going to revert to) was associated with less income disparity, a lower household debt to GDP ratio, and less over-leveraging. Additional attention to history would show that the major economic crises have all unroofed a previously underappreciated regulatory deficiency, which was true for the S&L crisis in 1988, true in 1929, and true now. Fundamental systemic change isn't needed -- what IS needed is a subtle check on the relentless flow of wealth from the poor to the rich.
Call it superficial pandering, but it's the results that matter.
Mr. Fight the Power;53720 wrote:Increased tax burdens on upper class income earners translates to higher prices paid on goods for lower class income earners, so that tax benefit the lower class gets may be just enough to make up for the added return on investment needed to cover the tax hike.
That's not at all true -- an increased tax burden on the wealthy is not going to alter demand for basic foodstuffs and clothing, and if anything it will
decrease prices by lowering the disposable income (and therefore spending power) of the wealthy.
Mr. Fight the Power;53720 wrote:SCHIP has been the principle goal of healthcare lobbyists for years. This plan lines the pockets of HMOs, pharmaceutical companies, and other health industries.
That's utterly incorrect. How is it going to line the pocket of an HMO when the whole purpose of it is for the government to foot the bill in lieu of an HMO? How will it line the pockets of health industries when the government grossly underpays for medical services (such that many medical practices cannot afford to take patients with public health insurance because they'll be operating at a loss).
Mr. Fight the Power;53720 wrote:I personally feel that ending economic stratification begins with giving individuals the ability to gain independence from certain wealthier groups, not by using the government to enforce the preexisting dependency.
Got any examples of where this has worked in modern American history?
Mr. Fight the Power;53720 wrote:And financial institutions do not engage in high-risk investments without reason. I love this now pervasive view that these individuals with degrees and years of experience are financial dunces.
They were self-selected based on their ability to hide risk from investors but generate fabulous wealth. The subprime crisis is a fantastic example. Mortgages pay 8-9% interest, so let's lower the credit standards -- even if 5% of them default, it's still a huge return. Banks refused to revalue their assets despite the plummeting value of real estate, because that would have meant writing down their capital to maintain their balance sheet. The entire system operated under an assumption that real estate prices would never fall and that the stock market indices would keep going up.
If they weren't dunces, they were delusional optimists. That's what happens when you get a taste of billions of dollars.
Mr. Fight the Power;53720 wrote:The fact of the matter is that these were not remotely "high-risk" investments, because they were tacitly backed and facilitated by the government.
So credit-default-swaps weren't high risk??? 30:1 leveraging wasn't high risk??? What are you talking about???
Mr. Fight the Power;53720 wrote:The government did everything in its power to facilitate poor investment and credit practices.
Sure, they passed on many opportunities to regulate this. Who is arguing otherwise?
Mr. Fight the Power;53720 wrote:Obama's solution to the crisis this caused: Do the same thing, only more of it!
Is today opposite day? Or have you just never actually compared his and Bush's policies side to side?
It doesn't matter -- your argument comes not from actual attention to policies, but to an unyielding thesis of yours that the government is out to get all of us and that everything is the same. To hell with any evidence to the contrary, you're always coming to the exact same conclusions.
Mr. Fight the Power;53720 wrote:Whats more, do you think that banks care whatsoever for regulation and oversight? Who do you think controls the oversight?
Left to their own devices, banks and investors will screw themselves before realizing what they've done. That's the basic error that Alan Greenspan, Ronald Reagan, Henry Paulson, and George W. Bush have made -- the assumption that people won't make self-destructive decisions. Well, how has that assumption worked out?
If there were regulations preventing sub-prime mortgages, or regulations requiring 100% disclosure of credit-default swaps, or regulations about writedowns of bank asset value, or regulations about leverage limits, or regulations about risk disclosure, or regulations about capital requirements, then this crisis may never have happened.
Mr. Fight the Power;53720 wrote:Every single one of Obama's advisors and cabinet members on the economic side are very rich individuals. Where do you think their money comes from?
Who cares?