How would a libertarian handle a financial market collapse such as in 2008?

[웃 910]

I was looking at this infographic from cbo.gov

What really sticks out is that we gave the financial sector almost 1/4 trillion dollars, and they already repaid $225 of the $246 billion they received. The chart shows a $25 billion profit for the tax payer. And we saw a recovery in jobs, in stocks, in the economy, in everything. The banking system is the heart, soul, and mind of our economy. Without it functioning everyone is fvcked. Times were scary in 4th quarter 2008 and the beginning of 2009. Ron Paul would have sat on his hands choosing his 'beliefs/principles' over a solution. Seeing how we profited from saving the banks, and they paid us back lightening fast, do you support what we did? I don't think it was sticking a bandaid on a bullet hole. Doing nothing would have destroyed us. We'd probably be looking at stock market at pre 1990 levels, capital flight risk, and pretty soon bread lines! What say you?

[Gary and Alla 3,694]

A libertarian would not have signed the Bill on July 12, 1999 that Democrat Bill Clinton did allowing speculation in the housing market that led to the collapse. Under Libertarian control, the collapse would never happen.

Clinton, by privatizing profit and socializing loss, caused the financial mess we are all in now in order to provide "affirmative action" in the mortgage market and allow people that were not qualified to own homes.

Sort of like asking "How would a libertarian put out a fire that he started"

Answer "he would not start the fire to begin with"

Edited January 10, 2012 by Gary and Alla

[Obama 2012 1,714]

A libertarian would not have signed the Bill on July 12, 1999 that Democrat Bill Clinton did allowing speculation in the housing market that led to the collapse. Under Libertarian control, the collapse would never happen.

Clinton, by privatizing profit and socializing loss, caused the financial mess we are all in now in order to provide "affirmative action" in the mortgage market and allow people that were not qualified to own homes.

Sort of like asking "How would a libertarian put out a fire that he started"

Answer "he would not start the fire to begin with"

bingo.

People can blame W all they want for his idiocy, but this financial mess today is a direct result of the Reagan and Clinton administrations.

[slim 1,530]

We couldn't survive without the banks, automakers, etc.?

You can't be serious.

[luckytxn 2,264]

The bailout did more harm than good. It allowed the weak to survive and that means the problems are still there and festering. The strong that were more fiscally responsible should have been allowed to pick over the weak ones carcass and take what was good and discard the mistakes. The economy would also have reacted more positive faster and with confidence. All we ended up doing was spending a lot of money and harming the economy that is still struggling. It did allow the Pols to get their turn at the trough.

[slim 1,530]

A dude I know posted something about the used car market recently. I reminded him of the "success" of cash for clunkers. He said something about the government not helping out poor people. I reminded him it was a "success."

[Mr. Big Dog 10,747]

Under Libertarian control...

I thought libertarians are all about liberty and here you talk about control. Controlled liberty?

[slim 1,530]

I thought libertarians are all about liberty and here you talk about control. Controlled liberty?

Control is fine... if you agree to it.

[Mr. Big Dog 10,747]

Control is fine... if you agree to it.

If I agree to it, it doesn't take control.

[slim 1,530]

If I agree to it, it doesn't take control.

Exactly.

Welcome to being a libertarian!

[Mr. Big Dog 10,747]

Exactly.

Welcome to being a libertarian!

I am not a libertarian. I am human.

[웃 910]

We couldn't survive without the banks, automakers, etc.?

You can't be serious.

Unless by survive you mean fleeing to the countryside, building a cabin, hunting for your food, having the wifey watch over the chillun, and having a small army on guard to kill off intruders. Then yes, I am serious.

Bank of America employees 290,000 people (lower right under key stats and ratios)!

Citigroup 267,000!

When they say too big to fail this is partly what they are referring to. These two banks alone have a market cap of more than $150 billion.

[Obama 2012 1,714]

Unless by survive you mean fleeing to the countryside, building a cabin, hunting for your food, having the wifey watch over the chillun, and having a small army on guard to kill off intruders. Then yes, I am serious.

Bank of America employees 290,000 people (lower right under key stats and ratios)!

Citigroup 267,000!

When they say too big to fail this is partly what they are referring to. These two banks alone have a market cap of more than $150 billion.

557,000 people = 0.18% of the population. Not even a quarter of 1%.

That's not too big to fail.

[slim 1,530]

Unless by survive you mean fleeing to the countryside, building a cabin, hunting for your food, having the wifey watch over the chillun, and having a small army on guard to kill off intruders. Then yes, I am serious.

Bank of America employees 290,000 people (lower right under key stats and ratios)!

Citigroup 267,000!

When they say too big to fail this is partly what they are referring to. These two banks alone have a market cap of more than $150 billion.

So?

I'm guessing most of the employees live beyond their means as well. Is that my fault? Is it my responsibility to look after them because they've been making poor financial decisions?

It's time for everyone in this country to start living within their means.

[웃 910]

So?

I'm guessing most of the employees live beyond their means as well. Is that my fault? Is it my responsibility to look after them because they've been making poor financial decisions?

It's time for everyone in this country to start living within their means.

I don't think you understand what a full financial collapse means, do you? !!!

All it took was Lehman to go bankrupt to tank the entire stock market (even the good companies). Even Apple fell from $177 on August 22, 2008 to $70-something by November 2008.

Bank of America $38 in mid-September 2008 to a couple of bucks in March 09.

When the stock market tanks EVERYONE panics. Nobody hires, nobody lends, GDP goes negative, incomes go down, wages go down, our consumer driven economy stops spending, companies layoff their workforce, companies go bankrupt, and peoples net incomes COLLAPSE overnight. Just to name a few things that happen. I honestly don't think you get that. My bad.

Edited January 10, 2012 by ☠