The Bagman

Last active
2 years, 9 months ago
  • And also, for the cash reserves argument in the original video, O’Rourke is being typically disingenuous. Ridiculous leverage caused the crisis, so halfway sane leverage requirements were in Dodd-Frank. The banks then chose, instead of using that money to make loans, to use it to continue to make the same kind of casino bets that crashed the economy in the first place.

    Not to mention that it says nothing of the non-bank businesses that have tons of cash on hand, but they’re not using it to hire people because there’s no excess demand for their products and services, so there’s no reason to hire new people. I don’t blame the corporations for that (except as far as I blame them generally for the state of the economy), since it’s crazy to ask them to hire people to make stuff they won’t be able to sell. The answer, obviously, is to enact policies that will increase demand, instead of the same old “give all the money to the rich and hope that everything gets better” plan that we’ve had under 11 years of Bush and Obama.

  • Gary, let’s set aside how much responsibility belongs with people who took out loans they couldn’t pay back. I’d say that it’s more than zero, but less than you think. Either way, the issues here are that three groups did wrong: banks that gave out loans to make leveraged bets on them, policymakers who failed to regulate an out-of-control market, and people who took out bad loans because they wanted to have a nice house or whatever. The regulators still have their jobs, and the same exact people who caused the problem were appointed to fix it. The taxpayers bailed out the banks, and they’re doing about as well as ever. The homeowners lost their houses and will probably never recover. The bankers and regulators were made whole when they neither needed it nor deserved it.

    Ironically, of all the groups to bail out, the homeowners would’ve been best for the overall economy, too. Yes, that would mean that some “undeserving poor” got to keep things that they didn’t “earn,” but it would mean more money circulating in the economy, better neighborhoods, and so forth.

  • The Bagman became a registered member

    2011-10-09 21:14:27View | Delete