The sky would be falling in Col, if it weren't for taxpayers chipping in to hold it all up by injecting enormous amounts of money. What is happening at present is not free capitalism at work, but old fashioned government socialist intervention for the greater good.

As for the constant carry-on about that this is all about 'giving home loans to people who have no hope of repaying them'. What about a view that the vast majority of houses are over valued and that is why it is increasingly out of reach to an ever growing number of people? Which, if the economic times where so very good really makes no sense at all.

In good economic times home ownership should become within reach of more, not less, people. Otherwise, what is the point of all that wealth and a nation enjoying economic success?

The primary function of housing is not for personal enrichment, but for that human need of secure shelter.

Laissez faire capitalism is as untenable as is communism. Steadily and gradually too much of the economic power ends up in fewer and fewer hands.

There is not a single lender out there who at any stage loaned money for altruistic reasons.

I've been waiting for some kind of comment on it in the MSM, but it hasn't happened as far as I can tell - I mean the quite bizarre nomenclature of the 'Fannie Mae' and 'Freddie Mac' smoke-and-mirrors lending institutions that apparently precipitated the current global financial crisis.

I mean, they sound more like plastic cheesecake or cardboard hamburger manufacturers than reputable lending institutions, no?

Oh, hang on...

It's global economic implosion by McDonald's.

In coming times, we need to be careful not drift from Market Capitalism into State Capitalism. Political Scientist, Louis Wasserman's question to assess, where we stand is, "In whose intersts does the State predominantly operate to protect?

"The Market" has proven itself to be no more than a somewhat brainless beast. A thoroughbred, pedigree animal to be sure, but a beast just the same.

One day, someone thought it was time to let it off the leash...

Whereupon it blundered across the freeway and got knocked down. That dumb animal just started chasing after cars and stuff, so the outcome was inevitable. It was just a matter of time.

You see, it was not a product of evolution. It didn't know it's place in the great scheme of things. It had been bred only to hunt for a particular form of game - the elusive Something-For-Nothing bird.

Look - either we put it down, or send it to the vet to be spayed. Then it can spend the rest of it's days as a domesticated, useful animal in the service of mankind. Dunno about you, but I'm sick of stepping in it's excrement.

- and look at this backyard - it's trashed!

CJ

"I mean, they sound more like plastic cheesecake or cardboard hamburger manufacturers than reputable lending institutions, no?"

LOL!

Don't know where their names came from, but they've certainly provided useful scapegoats in the current mess. Not only does heaping the blame on these weird sounding entities conveniently let the more 'respectable' institutions off the hook, it provides a neat avenue for government to be dragged in to share the blame as well. Meanwhile, the real culprits are free to regroup and cook up new ways to bend the rules.

Chris

Great analogy!

The trouble is the punters are still lining up to place their bets on the same old horse.

Anansi “The sky would be falling in Col, if it weren't for taxpayers chipping in”

Not necessarily. Speculators have a sharp eye and see opportunity when it arises.

The great thing with speculators in a capitalist market, they work counter-cyclical, buying when the chicken littles are selling and selling when the chicken littles are buying.

All that happens when governments take over is the market can no longer function because no one is allowed to buy or sell.

I note Bush has stated the package is ‘tactical’, rather than strategic and the US government is eager to divest itself of their acquired assets sooner rather than later. I only trust the taxpayers money, being ‘invested’ produces a value adding return rather than simply being used as “cheap capital on demand”.

“The primary function of housing is not for personal enrichment, but for that human need of secure shelter.”

Ah an “out-with-the-pixies” philosophy.

Housing is a commodity, just like food.

I see plenty of people enriching themselves in the food area of “human need”, from Woollies to my local chippie

Do you believe Safeway and my flake and minimum of chips should be supplied to me at cost?

Not much incentive in that for Safeway or my hard working chip fryer

Chris Carisbrooke “The Market" has proven itself to be no more than a somewhat brainless beast.”

It never has been to repository of all knowledge, it merely brings together those with a common interest in trade.

However, when compared to the ignorance of government, it is an Einstein along side swine.

And as far as a ‘beast’ is concerned, in whatever shape it is perceived, it out rates and will outlive the headless chook image of the chicken littles like Krudd & Co.