Dr. Lee Carlsons review of
Chain of Blame: How Wall Street Caused the Mortgage and Credit Crisis
Amazon.com
July 26, 2008
http://www.amazon.com/review/R1GSVQVRQZGC4E/ref=cm_cr_rdp_perm/
From a quantitative perspective, to sort through the current "mortgage mess" would take an intense effort, requiring a large number of researchers and computer time. No one has performed this kind of analysis as of yet, but there have been quite a number of individuals who have given anecdotal and semi-historical accounts of the turmoil in the credit/mortgage markets in the last few years.
There is of course an obvious danger in giving such a narrative account: it imputes market expertise to these individuals at a level that cannot be justified, given the complexities of the financial markets. No individual, whether a low-level analyst or the chief executive officer of a major mortgage firm, has the intellectual capacity or market savvy to describe or move the markets to a degree that is typically reported in the popular and financial press. Such individuals may think they do, and their actions and boasting reflect the mental confabulation that they have fallen prey to, but at best they have a limited picture of financial dynamics, and whatever monetary success they have is due to events that are completely out of their control. Many authors and reporters though have succumbed to an unjustified admiration as regards the senior management of financial firms, wherein they have assumed, falsely, that those who occupy the top echelons of the company hierarchy have special insight or knowledge into financial events that others do not. Frequently these managers are given accolades and awards for this expertise, thus exacerbating the excess of veneration devoted to them.
The authors use the savings and loan fiasco as an example of how things can go completely amok when an economic sector is suddenly deregulated, and how the Washington peddlers of influence can pretend to be in favor of free markets but instead game the system to favor themselves and a few others in their cabal. The authors report the savings and loan fiasco as costing the taxpayers $150 billion: tax dollars extracted from them coercively by those in government at the time who preached about the moral and economic superiority of the "free market". They love "free markets" as long as they do not cost them money. If they do, they quickly use government resources and regulation to "help" the consumer and "stabilize" the economy, masking their real intentions of protecting their economic status and that of their financially incompetent buddies. Put out on their own to compete in a truly free market without the arbitrary and capricious assistance of the federal government, this gang of moochers would fall flat on their faces.
It would take a gargantuan effort from the members of the populace to rid themselves not only of the irrational individuals who populate the governmental hierarchies and monetary regulatory agencies, but also to once and for all rid themselves of the excess of veneration paid to those who head the financial centers of the world.
Internet Censorship Alert
Internet Censorship Alert: Alex Jones exposes agenda to 'blacklist' dissenting sites (March 14, 2010)
As I predicted, the Obama Administration is trying to shut down the Internet - at least the parts he doesn't like. Barack Obamas regulatory czar, Cass Sunstein has stated that he wants to ban conspiracy theories from the internet. Think about what this means - Every video, every website, every blog, every email, that exposes or just criticizes the government for any reason whatsoever could be labeled a "conspiracy" and taken down. Your home could be raided in the middle of the night, and you could be carted of to jail for criticizing the government. All they have to do is call it a "conspiracy theory".
http://www.youtube.com/watch?v=aqAWmBLFodE
Wednesday, August 20, 2008
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