Stephann -> RE: Let's Raise Taxes (3/17/2008 10:08:33 AM)
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quote:
ORIGINAL: Mercnbeth quote:
Actually, there have also been a lot of disastrous privatizations in the third world. I'll call your unsubstantiated remark... "Actually, there have also been a lot of disastrous government take overs in the third world". Except I'd point to 1955 Chevy's still being the desired auto of choice in the government taken over land of Cuba. Albeit weak and cheap, but at least it give an example of what I base my opinion. Enron's fall, was not the result of electricity privatization, it was the result of investment fraud. I'd support a similar result for those currently in a similar situation regarding their mortgages. As with Enron, let the foolish investors fail, and the foolish enables, the mortgage companies, with them. If there was fraud involved, let them go to prison. Unlike a government failed program, like Education where their failure results in getting more money from the taxpayers; failed private sector businesses and individuals should be allowed to fail if it proves their decisions were bad. Basically, you want a government program that protects people from failure, businesses, individuals in the case of the current mortgage situation. An 'ideal' government in good times. A bankruptcy waiting to happen in these times. To be clear, I don't support enablers in government. I won't/don't support it in the private sector. Neither government or the private sector is always good or bad. Decisions they make are and should have consequence. Everyone who makes an investment purchase has the opportunity to read about the risk. Whether its the person needing a mortgage, or the investor buying $100 Million blocks of mortgage backed notes. Last Monday, it would have cost you $34.00 to buy Bear Sterns, today its worth $2.00. Are you suggesting that each and every buyer from last week be 'bailed out'? Failure is good. You learn from it. Next time those who 'lost their homes' are in a position to get a mortgage, my guess is they will calculate the 'worst case' payment. By the way, they didn't really loose their homes, they just can't afford them, and never could in the first place. Next time and investment firm is present with $100 Million mortgage investment, they'll look at the qualification of the borrowers. Granted its a bad result for those making bad decisions. How is it a bad result for those who had the same opportunity and did NOT make the same decision? It's only 'bad' when the government uses your taxes to ease or eliminate the consequence for those who made the bad decisions; corporate and individual alike. That is VERY bad, because it establishes precedent, which when it happens again, will be considered an entitlement - VERY VERY bad for all who try to avoid bad decisions, because we pay for errors we did not make. An example I'm personally familiar with... Last year, there used to be only private bus service in Santiago, Chile. Several competing bus service lines led to an often frustrating, but overall tolerable public transportation system in a city where only about half of adults own cars. A government program was implemented to 'modernize' the public transportation system. It was lauded as being a landmark achievement for the country with a fleet of brand new doublelong buses, that was supposed to make it one of the best systems in the world. A week after it was operational, people were so angry that buses were actually hijacked, rolled, and burned because the system was a total failure. Yet the 'old' bus companies had been run out of business, and there was no alternative. It was revealed that the original studies and planning had woefully under reported demand and expectations, and that vast sums of government money had been subverted into private pockets. The end result was a far more expensive (with fare costs doubling), less efficiant system bordering on catastrophe. Today, it's still seen as one of the worst failures in the countries history. Publicly controlled systems don't have any competition to bury them when they fail. Stephan
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